Market Newsdesk

July 21, 2021 4:33 pm

Neenah Announces the Appointment of a New Board Member

Neenah Announces the Appointment of a New Board Member

ALPHARETTA, Ga.–(BUSINESS WIRE)–
Neenah, Inc. (NYSE: NP), a leading global manufacturer of specialty materials focused on filtration media, specialty coatings, engineered materials, imaging and packaging, today announced the appointment of Shruti Singhal to its Board of Directors. In addition, Mr. Singhal will serve as a member of the Audit Committee. Following this appointment, the Board will compromise of eight directors.

“We are pleased to welcome Shruti Singhal to the Neenah Board,” said Julie Schertell, President and Chief Executive Officer of Neenah. “Shruti’s strong leadership and operational experience in global industrial organizations will be invaluable to Neenah as we focus on manufacturing growth for our customers, employees, and shareholders.”

Mr. Singhal is the Chief Executive Officer of Chroma Color Corporation, a leading formulator, and specialty color and additive concentrates supplier. Mr. Singhal has worked in North America and Europe with companies like Henkel, Cognis (now BASF), Rohm & Haas, The Dow Chemical Company, and others throughout his career. Before joining Chroma Color, he served as President of DSM’s Engineering Materials Business. He received a master’s degree in chemical engineering from Drexel University and a bachelor’s in chemical engineering. Also, he completed the Global Marketing Management Program at The Wharton School at the University of Pennsylvania.

About Neenah, Inc.

Neenah is committed to manufacturing growth for its customers, end-users, shareholders, and employees. With manufacturing facilities across North America, Europe, and Asia, we are a leading global manufacturer of specialty materials serving customers across six continents, with headquarters in Alpharetta, Georgia. We are focused on growing in filtration media, specialty coatings, engineered materials and imaging & packaging. Our materials are in various products used every day, such as transportation and water filters, premium packaging of spirits, technology and beauty products, industrial labels, tapes and abrasives, and digital printing for high-end apparel. To learn more, please visit www.neenah.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005808/en/

Investor Inquiries

Kyle Anderson

Vice President, Corporate Strategy and Investor Relations

Neenah, Inc.

(678) 518-3278

[email protected]

Media Inquiries

All media inquiries should be directed to:

Missy Elam

Director, Corporate Communications

Neenah, Inc

[email protected]

678-518-3263

KEYWORDS: United States North America Georgia

INDUSTRY KEYWORDS: Packaging Chemicals/Plastics Other Manufacturing Manufacturing

MEDIA:

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July 21, 2021 4:33 pm

Metropolitan Bank Holding Corp. Reports Second Quarter Net Income of $13.3 Million and Diluted EPS of $1.55

Metropolitan Bank Holding Corp. Reports Second Quarter Net Income of $13.3 Million and Diluted EPS of $1.55

Total Revenues increased 20.4% from the prior year quarter
Tangible book value per share increased 14.7%from the prior year quarter

NEW YORK–(BUSINESS WIRE)–
Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank (the “Bank”), today reported net income of $13.3 million, or $1.55 per diluted common share, for the second quarter of 2021 compared to net income of $10.8 million, or $1.29 per diluted common share, for the second quarter of 2020.

Financial Highlights include:

Total revenues of $43.1 million, up 20.4% from the prior year quarter, and up 26.9% excluding gain on sale of securities¹ recorded in each period
Second quarter earnings per share of $1.55, up 20.2% from the prior year quarter
Book value per share was $42.92 per share, up 14.2% and tangible book value per share¹ was $41.75, up 14.7% from prior year quarter
Annualized return on average equity of 15.0% and an annualized return on average tangible common equity¹ of 15.7%
Loans were up 6.5% from the linked quarter and 19.3% from June 30, 2020
Deposits were up 19.5% from the linked quarter and 55.8% from June 30, 2020, with non-interest bearing demand deposits increasing by $1.3 billion or 83.0% since June 30, 2020.
Efficiency ratio¹ improved to 50.3% compared to 51.1% for the prior year quarter

Mark DeFazio, President and Chief Executive Officer, commented, “Our second quarter results, which underscore our sustainable and resilient organic growth, highlight the business model and values we developed 22 years ago when MCB was founded. At its core, MCB is a commercial bank that consistently drives organic loan and deposit growth, which provides sustainable growth in net income, tangible book value per share and EPS. Given our early strategic vision and foresight on industry change, we developed a unique ability to collaborate with fintech clients well before “fintech” was a term. Our Global Payments Group continues to pave the way for the transformation of MCB that allows us to simultaneously be a high performing commercial bank and a critical financial infrastructure partner to fintechs. Our Global Payments Group, with revenue growth and stable, non-interest-bearing deposits, continues to be a meaningful source of liquidity. As our fintech partners continue to gain market share, MCB is well positioned to benefit from this vertical’s low acquisition cost of deposits.

As we approach the end of our fourth year as a public company, I am reminded that our people make the difference. Without the dedication and effort of the entire MCB team, including through the challenges of the pandemic, we would not be able to deliver on our promise to our clients to help them build and sustain generational wealth. A heartfelt thank you goes out to the entire MCB team for all they do to make this a reality,” Mr. DeFazio concluded.

¹non-GAAP financial measure. See Reconciliation of Non-GAAP measures starting on page 12.

Balance Sheet

The Company had total assets of $5.8 billion at June 30, 2021, an increase of 45.8% from June 30, 2020. Total loans net of deferred fees and unamortized costs increased to $3.5 billion at June 30, 2021, as compared to $2.9 billion at June 30, 2020. The increase in total loans from June 30, 2020 was due primarily to an increase of $225 million in commercial real estate (“CRE”) loans (including construction and multifamily loans) and $335 million in commercial and industrial loans. Loan production was $501 million year to date at June 30, 2021 compared to $330 million year to date at June, 30 2020.

Total cash and cash equivalents were $1,7 billion at June 30, 2021, an increase of 108.9% from June 30, 2020. The increase in cash and cash equivalents reflects the strong growth in deposits. Total securities, primarily those classified as available-for-sale (“AFS”), were $548 million at June 30, 2021, an increase of 181.0% from June 30, 2020 due to the deployment of excess liquidity from deposit growth.

Total deposits increased to $5.3 billion at June 30, 2021, up 55.8% from $3.4 billion at June 30, 2020. The increase in deposits was due to increases of $1.3 billion in non-interest-bearing deposits and $626 million in interest-bearing deposits, resulting from increases across most deposit verticals. Non-interest-bearing deposits were 52.8% of total deposits at June 30, 2021, as compared to 45.0% at June 30, 2020.

The Company and the Bank each meet all the requirements to be considered “Well-Capitalized” under applicable regulatory guidelines. Total non-owner-occupied commercial real estate loans were 442.6% of total risk-based capital at June 30, 2021 compared to 422.0% of total risk based capital at June 30, 2020.

Income Statement

Financial Highlights


*(dollars in thousands)*	Three months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020
Total Revenues	$	43,129		$	35,814		$	82,145		$	69,121
Net income		13,336			10,811			25,453			16,908
Diluted earnings per common share		1.55			1.29			2.45			2.01
Annualized return on average assets		0.97	%		1.14	%		1.01	%		0.94	%
Annualized return on average equity		14.98	%		13.82	%		14.58	%		10.95	%
Annualized return on average tangible common equity*		15.65	%		14.36	%		15.24	%		11.54	%

Net Interest Income

Net interest income for the second quarter of 2021 was $37.0 million, an increase of $2.6 million from the linked quarter. This increase was primarily due to a higher average balance of $5.5 billion in interest-earning assets for the second quarter of 2021, which increased $816 million from the linked quarter. This increase was partially offset by an increase of $253 million in average interest-bearing liabilities, which were $2.4 billion for the second quarter of 2021, as compared to $2.2 billion for the linked quarter.

Net interest income increased $6.8 million for the second quarter of 2021, as compared to the second quarter of 2020, primarily due to an increase of $1.7 billion in the average balance of interest-earning assets for the second quarter of 2021, as compared to the second quarter of 2020. This was partially offset by a $423 million increase in the average balance of interest-bearing liabilities for the second quarter of 2021, as compared to the second quarter of 2020.

Net Interest Margin

Net interest margin decreased by 32 basis points to 2.68% for the second quarter of 2021, as compared to 3.00% for the linked quarter, primarily due to increased lower yielding overnight deposits driven by deposit growth. Additionally, the average cost of interest-bearing deposits remained at 0.60%.

Net interest margin decreased by 51 basis points to 2.68% for the second quarter of 2021 as compared to 3.19% for the second quarter of 2020, primarily due to increased low yielding overnight deposits driven by deposit growth; partially offset by a decrease in the average cost of interest-bearing liabilities driven by the lower rate environment.

Total cost of funds was 32 basis points, a decrease of 3 basis points from the linked quarter, and a decrease of 16 basis points from the prior year quarter, given the shift in mix toward non-interest bearing deposits.

Non-Interest Income

Non-interest income was $6.2 million for the second quarter of 2021, an increase of $1.6 million from the linked quarter driven primarily by a $0.4 million increase in Global Payments Group revenue, which continues to see strong increases in client transaction volumes driving revenue growth, a $0.6 million increase in recognized gains on sales of AFS securities and an increase of $0.5 million in service charges and fees.

Non-interest income for the second quarter of 2021 increased by $0.5 million, as compared to the second quarter of 2020. The increase was primarily due to an increase of $1.5 million of Global Payments Group revenue, an increase of $0.7 million in service charges and fees, offset by a reduction in recognized gains on sales of AFS securities of $1.7 million.

Non-Interest Expense

Non-interest expense was $21.7 million for the second quarter of 2021, an increase of $1.4 million from the linked quarter. The primary drivers were a $0.7 million increase in professional fees and a $0.5 million increase in technology costs, both of which primarily related to business and volume growth.

Non-interest expense increased $3.4 million for the second quarter of 2021, as compared to the second quarter of 2020. Drivers included an increase in compensation and benefits cost due to additional full-time employees along with annual salary adjustments and increases in professional fees in line with business and volume growth, partially offset by reduced licensing fees given the LIBOR rate reduction.

Asset Quality

Credit quality remains strong with no charge offs in the second quarter of 2021, while non-performing loans fell to 0.2% of total loans. During the second quarter of 2021, the Company recorded a credit provision of $1.9 million primarily driven by loan growth. COVID-19 related full payment deferrals declined to $11.0 million, or 0.3% of the total loan portfolio as of June 30, 2021. Principal only deferrals remained steady at $37.3 million or 1.1% of total loans as of the same date.

About Metropolitan Bank Holding Corp.

Metropolitan Bank Holding Corp. (NYSE: MCB) is the holding company for Metropolitan Commercial Bank. The Bank provides a broad range of business, commercial and personal banking products and services to small and middle-market businesses, public entities and affluent individuals in the New York metropolitan area. Founded in 1999, the Bank is headquartered in New York City and operates six locations in Manhattan, Brooklyn and Great Neck, Long Island. The Bank is also an active issuer of debit cards for third-party debit card programs and provides critical global payments infrastructure to its fintech partners. the Bank is a New York State chartered commercial bank and a Federal Reserve System member bank whose deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation (“FDIC”), and an equal opportunity lender. For more information, please visit www.mcbankny.com.

Forward Looking Statement Disclaimer

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include but are not limited to the Company’s financial condition and capital ratios, results of operations and the Company’s outlook and business. Forward-looking statements are not historical facts. Such statements may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “plan,” “continue” or similar terminology. These statements relate to future events or our future financial performance and involve risks and uncertainties that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we caution you not to place undue reliance on these forward-looking statements. Factors which may cause our forward-looking statements to be materially inaccurate include, but are not limited to an unexpected deterioration in our loan or securities portfolios, unexpected increases in our expenses, greater than anticipated growth and our ability to manage our growth, unanticipated regulatory action or changes in regulations, unexpected changes in interest rates, an unanticipated decrease in deposits, an unanticipated loss of key personnel or existing customers, competition from other institutions resulting in unanticipated changes in our loan or deposit rates, unanticipated increases in FDIC costs, changes in regulations, legislation or accounting rules and unanticipated adverse changes in our customers’ economic conditions or general economic conditions, as well as those discussed under the heading “Risk Factors” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and whether the continued reopening of businesses will result in a meaningful increase in economic activity. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: the demand for our products and services may decline, making it difficult to grow assets and income; if the economy is unable to substantially reopen, and higher levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; our cyber security risks may increase if a significant number of our employees are forced to working remotely; and FDIC premiums may increase if the agency experiences additional resolution costs. Forward-looking statements speak only as of the date of this release. We do not undertake any obligation to update or revise any forward-looking statement.

Consolidated Balance Sheet


*(dollars in thousands)*	June 30, 2021		December 31, 2020			June 30, 2020
Assets
Cash and due from banks	$	29,651	$	8,692	$	9,529
Overnight deposits		1,689,614		855,613		813,147
Total cash and cash equivalents		1,719,265		864,305		822,676
Investment securities available for sale		543,769		266,096		189,359
Investment securities held to maturity		2,222		2,760		3,319
Investment securities — equity investments		2,291		2,313		2,301
Total securities		548,282		271,169		194,979
Other investments		11,989		11,597		15,731
Loans, net of deferred fees and unamortized costs		3,449,490		3,137,053		2,892,274
Allowance for loan losses		(37,377)		(35,407)		(32,505)
Net loans		3,412,113		3,101,646		2,859,769
Receivable from prepaid card programs, net		43,089		27,259		31,123
Accrued interest receivable		14,424		13,249		11,148
Premises and equipment, net		13,337		13,475		15,065
Prepaid expenses and other assets		14,961		18,388		10,217
Goodwill		9,733		9,733		9,733
Total assets	$	5,787,193	$	4,330,821	$	3,970,441
Liabilities and Stockholders’ Equity
Deposits:
Non-interest-bearing demand deposits	$	2,794,136	$	1,726,135	$	1,526,439
Interest-bearing deposits		2,494,137		2,103,471		1,868,300
Total deposits		5,288,273		3,829,606		3,394,739
Federal Home Loan Bank of New York advances		—		—		104,000
Trust preferred securities		20,620		20,620		20,602
Subordinated debt, net of issuance cost		24,684		24,657		24,629
Secured borrowings		36,449		36,964		41,948
Accounts payable, accrued expenses and other liabilities		30,598		61,645		34,780
Accrued interest payable		1,773		712		1,199
Prepaid third-party debit cardholder balances		21,201		15,830		31,357
Total liabilities		5,423,598		3,990,034		3,653,272

Class B preferred stock		3		3		3
Common stock		83		82		82
Additional paid in capital		219,098		218,899		217,644
Retained earnings		146,283		120,830		98,271
Accumulated other comprehensive gain/(loss), net of tax effect		(1,872)		973		1,169
Total stockholders’ equity		363,595		340,787		317,169
Total liabilities and stockholders’ equity	$	5,787,193	$	4,330,821	$	3,970,441

Consolidated Statement of Income (unaudited)


	Three Months Ended					Six Months Ended
*(dollars in thousands)*	June 30, 2021		March 31, 2021	June 30, 2020		June 30, 2021		June 30, 2020
Total interest income	$	41,050	38,106	$	34,223	$	79,156	$	70,291
Total interest expense		4,077	3,684		4,062		7,760		11,159
Net interest income		36,973	34,422		30,161		71,396		59,132
Provision for loan losses		1,875	950		1,766		2,825		6,556
Net interest income after provision for loan losses		35,098	33,472		28,395		68,571		52,576

Non-interest income:
Service charges on deposit accounts		1,349	1,065		803		2,414		1,883
Global payments revenue		3,628	3,267		2,108		6,894		3,729
Other service charges and fees		566	304		411		868		1,036
Unrealized gain (loss) on equity securities		4	(41)		19		(36)		55
Gain on sale of securities		609	—		2,312		609		3,286
Total non-interest income		6,156	4,595		5,653		10,749		9,989

Non-interest expense:
Compensation and benefits		11,211	11,428		10,058		22,638		20,017
Bank premises and equipment		2,000	2,024		1,887		4,024		4,387
Professional fees		2,003	1,304		882		3,306		1,837
Technology costs		1,447	927		824		2,374		1,581
Licensing fees		2,067	2,074		2,636		4,141		5,684
Other expenses		2,961	2,566		1,997		5,528		4,291
Total non-interest expense		21,689	20,323		18,284		42,011		37,797

Net income before income tax expense		19,565	17,744		15,764		37,309		24,768
Income tax expense		6,229	5,627		4,953		11,856		7,860
Net income	$	13,336	12,117	$	10,811	$	25,453	$	16,908

Earnings per common share:
Average common shares outstanding – basic		8,312,234	8,276,174		8,221,748		8,294,404		8,218,853
Average common shares outstanding – diluted		8,543,474	8,417,319		8,359,450		8,479,562		8,391,514
Basic earnings	$	1.59	1.46	$	1.30	$	2.50	$	2.04
Diluted earnings	$	1.55	1.43	$	1.28	$	2.45	$	2.00

Net Interest Margin Analysis


	Three months ended
	June 30, 2021						March 31, 2021
	Average						Average
	Outstanding				Yield/Rate		Outstanding				Yield/Rate
*(dollars in thousands)*	Balance		Interest		(annualized)		Balance		Interest		(annualized)
Assets:
Interest-earning assets:
Loans ⁽¹⁾	$	3,334,762	$	39,234	4.65	%	$	3,187,450	$	36,840	4.67	%
Available-for-sale securities		487,147		1,204	0.98	%		330,451		752	0.91	%
Held-to-maturity securities		2,348		9	1.52	%		2,623		11	1.71	%
Equity investments – non-trading		2,309		7	1.20	%		2,302		8	1.39	%
Overnight deposits		1,612,187		442	0.11	%		1,100,690		344	0.13	%
Other interest-earning assets		11,985		154	5.15	%		11,610		151	5.27	%
Total interest-earning assets		5,450,738		41,050	2.98	%		4,635,126		38,106	3.32	%
Non-interest-earning assets		90,287						69,894
Allowance for loan and lease losses		(36,339)						(35,969)
Total assets	$	5,504,686					$	4,669,051

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Money market, savings and other interest-bearing accounts	$	2,314,791	$	3,348	0.58	%	$	2,058,611	$	2,907	0.57	%
Certificates of deposit		83,606		217	1.04	%		86,902		264	1.23	%
Total interest-bearing deposits		2,398,397		3,565	0.60	%		2,145,513		3171	0.60	%
Borrowed funds		45,296		512	4.47	%		45,282		513	4.53	%
Total interest-bearing liabilities		2,443,693		4,077	0.67	%		2,190,795		3,684	0.68	%
Non-interest-bearing liabilities:
Non-interest-bearing deposits		2,603,198						2,067,539
Other non-interest-bearing liabilities		100,698						63,932
Total liabilities		5,147,589						4,322,266

Stockholders’ equity		357,097						346,785
Total liabilities and equity	$	5,504,686					$	4,669,051

Net interest income			$	36,973					$	34,422
Net interest rate spread ⁽²⁾					2.31	%					2.64	%
Net interest-earning assets	$	3,007,045					$	2,444,331
Net interest margin ⁽³⁾					2.68	%					3.00	%
Ratio of interest earning assets to interest bearing liabilities					2.23	x					2.12	x
Total cost of funds ⁽⁴⁾					0.32	%					0.35	%

(1) Amount includes deferred loan fees and non-performing loans.

(2) Determined by subtracting the annualized weighted average cost of total interest-bearing liabilities from the annualized weighted average yield on total interest-earning assets.

(3) Determined by dividing annualized net interest income by total average interest-earning assets.

(4) Determined by dividing annualized interest expense by the sum of total average interest-bearing liabilities and total average non-interest-bearing deposits.


	Three months ended
	June 30, 2021						June 30, 2020
	Average						Average
	Outstanding				Yield/Rate		Outstanding				Yield/Rate
*(dollars in thousands)*	Balance		Interest		(annualized)		Balance		Interest		(annualized)
Assets:
Interest-earning assets:
Loans ⁽¹⁾	$	3,334,762	$	39,234	4.65	%	$	2,827,154	$	32,983	4.68	%
Available-for-sale securities		487,147		1,204	0.98	%		138,944		609	1.73	%
Held-to-maturity securities		2,348		9	1.52	%		3,423		16	1.85	%
Equity investments – non-trading		2,309		7	1.20	%		2,274		11	1.91	%
Overnight deposits		1,612,187		442	0.11	%		794,377		374	0.19	%
Other interest-earning assets		11,985		154	5.15	%		18,485		230	4.92	%
Total interest-earning assets		5,450,738		41,050	2.98	%		3,784,657		34,223	3.62	%
Non-interest-earning assets		90,287						59,014
Allowance for loan and lease losses		(36,339)						(31,446)
Total assets	$	5,504,686					$	3,812,225

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Money market, savings and other interest-bearing accounts	$	2,314,791	$	3,348	0.58	%	$	1,764,742	$	2,437	0.56	%
Certificates of deposit		83,606		217	1.04	%		97,688		478	1.97	%
Total interest-bearing deposits		2,398,397		3,565	0.60	%		1,862,430		2,915	0.63	%
Borrowed funds		45,296		512	4.47	%		158,471		1,147	2.86	%
Total interest-bearing liabilities		2,443,693		4,077	0.67	%		2,020,901		4,062	0.81	%
Non-interest-bearing liabilities:
Non-interest-bearing deposits		2,603,198						1,398,438
Other non-interest-bearing liabilities		100,698						78,159
Total liabilities		5,147,589						3,497,498

Stockholders’ equity		357,097						314,727
Total liabilities and equity	$	5,504,686					$	3,812,225

Net interest income			$	36,973					$	30,161
Net interest rate spread ⁽²⁾					2.31	%					2.81	%
Net interest-earning assets	$	3,007,045					$	1,763,756
Net interest margin ⁽³⁾					2.68	%					3.19	%
Ratio of interest earning assets to interest bearing liabilities					2.23	x					1.87	x
Total cost of funds ⁽⁴⁾					0.32	%					0.48	%

Summary of Income and Performance Measures

Five Quarter Trend (unaudited)


	Quarter Ended
*(Dollars in thousands)*	June 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sept. 30, 2020			June 30, 2020
Net interest income	$	36,973		$	34,422		$	33,467		$	32,324		$	30,161
Provision for loan losses		1,875			950			1,795			1,137			1,766
Net interest income after provision for loan losses		35,098			33,472			31,672			31,187			28,395
Non-interest income		6,156			4,595			3,373			3,637			5,653
Non-interest expense:
Compensation and benefits		11,211			11,428			9,835			9,944			10,058
Other expense		10,478			8,895			7,953			8,986			8,226
Total non-interest expense		21,689			20,323			17,788			18,930			18,284

Income before income tax expense		19,565			17,744			17,257			15,894			15,764
Income tax expense		6,229			5,627			5,482			5,111			4,953
Net income		13,336			12,117			11,775			10,783			10,811

Pre-tax, pre-provision income*	$	21,440		$	18,694		$	19,052		$	17,031		$	17,530

Performance Measures:
Net income available to common shareholders		13,252			12,062			11,690			10,694			10,716
Per common share:
Basic earnings	$	1.59		$	1.46		$	1.42		$	1.30		$	1.30
Diluted earnings	$	1.55		$	1.43		$	1.39		$	1.27		$	1.29
Common shares outstanding:
Average – diluted		8,543,474			8,417,319			8,417,729			8,393,211			8,359,450
Period end		8,344,193			8,345,032			8,295,272			8,289,479			8,294,801
Return on (annualized):
Average total assets		0.97	%		1.05	%		1.13	%		1.07	%		1.14	%
Average equity		14.98	%		14.17	%		13.94	%		13.20	%		13.82	%
Average tangible common equity*		15.65	%		14.82	%		14.61	%		13.85	%		14.36	%
Yield on average earning assets		2.98	%		3.32	%		3.54	%		3.54	%		3.62	%
Cost of interest-bearing liabilities		0.67	%		0.68	%		0.64	%		0.71	%		0.81	%
Net interest spread		2.31	%		2.64	%		2.90	%		2.83	%		2.81	%
Net interest margin		2.68	%		3.00	%		3.21	%		3.18	%		3.19	%
Net charge-offs as % of average loans (annualized)		—	%		0.11	%		—	%		—	%		0.03	%
Efficiency ratio		50.29	%		52.09	%		48.28	%		52.64	%		54.58	%

*Non-GAAP financial measure. See Reconciliation of Non-GAAP measures on page 12.

Consolidated Balance Sheet Summary, Five Quarter Trend (unaudited)


*(dollars in thousands)*	June 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sept. 30, 2020			June 30, 2020
Assets
Total assets	$	5,787,193		$	4,922,801		$	4,330,821		$	4,001,759		$	3,970,441
Overnight deposits		1,689,614			1,125,589			855,613			758,913			813,147
Total securities		548,282			484,761			271,169			187,695			194,979
Other investments		11,989			11,638			11,597			11,097			15,731
Loans, net of deferred fees and unamortized costs		3,449,490			3,237,664			3,137,053			2,989,550			2,892,274
Liabilities and Stockholders’ Equity
Deposits:
Non-interest-bearing demand deposits	$	2,794,136		$	2,167,899		$	1,715,042		$	1,553,241		$	1,526,439
Interest-bearing deposits		2,494,137			2,258,818			2,103,471			1,974,385			1,868,300
Total deposits		5,288,273			4,426,717			3,814,513			3,527,626			3,334,739
Borrowings		45,304			45,290			45,277			45,263			149,249
Total stockholders’ Equity		363,595			348,217			340,787			328,584			317,169
Loan Production	$	265.4		$	235.7		$	174.0		$	183.3		$	177.3
Asset Quality
Non-performing loans:
Non-accrual loans:
Commercial and industrial		3,337			3,337			4,192			4,512			6,482
Consumer		1,560			1,523			1,428			1,157			601
Total non-accrual loans	$	4,897		$	4,860		$	5,620		$	5,669		$	7,083
Total non-performing loans	$	5,491		$	5,464		$	6,389		$	6,623		$	8,448
Non-accrual loans to total loans		0.14	%		0.15	%		0.18	%		0.19	%		0.24	%
Non-performing loans to total loans		0.16	%		0.17	%		0.20	%		0.22	%		0.29	%
Allowance for loan losses		(37,377)			(35,502)			(35,407)			(33,614)			(32,505)
Allowance for loan losses to total loans		1.08	%		1.10	%		1.13	%		1.12	%		1.12	%
Charge-offs	$	—		$	(855)		$	(30)		$	(82)		$	(192)
Recoveries	$	—		$	—		$	28		$	54		$	7
Net charge-offs/(recoveries) as % of average loans (annualized)		—	%		0.11			—	%		—	%		0.03	%
Regulatory Capital
Tier 1 Leverage:
Metropolitan Bank Holding Corp.		6.8	%		7.8	%		8.5	%		8.4	%		8.6	%
Metropolitan Commercial Bank		7.3	%		8.2	%		9.0	%		9.0	%		9.2	%
Common Equity Tier 1 Risk-Based (CET1):
Metropolitan Bank Holding Corp.		9.7	%		9.9	%		10.1	%		10.1	%		9.9	%
Metropolitan Commercial Bank		11.1	%		11.3	%		11.6	%		11.8	%		11.6	%
Tier 1 Risk-Based:
Metropolitan Bank Holding Corp.		10.5	%		10.7	%		10.9	%		11.0	%		10.8	%
Metropolitan Commercial Bank		11.1	%		11.3	%		11.6	%		11.8	%		11.6	%
Total Risk-Based:
Metropolitan Bank Holding Corp.		12.2	%		12.4	%		12.7	%		12.9	%		12.7	%
Metropolitan Commercial Bank		12.2	%		12.4	%		12.7	%		12.9	%		12.6	%

Reconciliation of Non-GAAP Measures

In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), this earnings release includes certain non-GAAP financial measures. Management believes these non-GAAP financial measures provide meaningful information to investors in understanding the Company’s operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP/adjusted financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the following table:


		Quarterly Data										YTD
*Dollars in thousands, except per share data*		June 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sept. 30, 2020		June 30, 2020		June 30, 2021		June 30, 2020
Average assets	$	5,504,686	$	4,669,051	$	4,153,908	$	4,026,366	$	3,812,225	$	5,089,152	$	3,633,280
Less: average intangible assets		9,733		9,733		9,733		9,733		9,733		9,733		9,733
Average tangible assets	$	5,494,953	$	4,659,318	$	4,144,175	$	4,016,633	$	3,802,492	$	5,079,419	$	3,623,547

Average equity	$	357,097	$	346,785	$	335,940	$	324,876	$	314,727	$	351,945	$	310,607
Less: Average preferred equity		5,502		5,502		5,502		5,502		5,502		5,502		5,502
Average common equity	$	351,595	$	341,283	$	330,438	$	319,374	$	309,225	$	346,443	$	305,105
Less: average intangible assets		9,733		9,733		9,733		9,733		9,733		9,733		9,733
Average tangible common equity	$	341,862	$	331,550	$	320,705	$	309,641	$	299,492	$	336,710	$	295,372

Total assets	$	5,787,193	$	4,922,801	$	4,330,821	$	4,001,759	$	3,970,441	$	5,787,193	$	3,970,441
Less: intangible assets		9,733		9,733		9,733		9,733		9,733		9,733		9,733
Tangible assets	$	5,777,460	$	4,913,068	$	4,321,088	$	3,992,026	$	3,960,708	$	5,777,460	$	3,960,708

Total equity	$	363,595	$	348,217	$	340,787	$	328,584	$	317,169	$	363,595	$	317,169
Less: preferred equity		5,502		5,502		5,502		5,502		5,502		5,502		5,502
Common equity	$	358,093	$	342,715	$	335,285	$	323,082	$	311,667	$	358,093	$	311,667
Less: intangible assets		9,733		9,733		9,733		9,733		9,733		9,733		9,733
Tangible common equity (book value)	$	348,360	$	332,982	$	325,552	$	313,349	$	301,934	$	348,360	$	301,934

Common shares outstanding		8,344,193		8,345,032		8,295,272		8,289,479		8,294,801		8,344,193		8,294,801

Book value per share (GAAP)	$	42.92	$	41.07	$	40.42	$	38.97	$	37.57	$	42.92	$	37.57
Tangible book value per share (non-GAAP)*	$	41.75	$	39.90	$	39.25	$	37.80	$	36.40	$	41.75	$	36.40

Total revenue (GAAP)**	$	43,129	$	39,017	$	33,467	$	32,234	$	35,814	$	82,145	$	69,121
Gain on sale of securities		609		–		–		–		2,312		609		3,286
Revenue excluding gain on sale of securities (non-GAAP)	$	42,520	$	39,017	$	33,467	$	32,234	$	33,502	$	81,536	$	65,835

* Tangible book value divided by common shares outstanding at period-end.

** Total revenue equals net interest income plus non-interest income.


	Quarterly Data
*Dollars in thousands*	June 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sept. 30, 2020			June 30, 2020
Net income	$	13,336		$	12,117		$	11,775		$	10,783		$	10,811
Plus: income tax expense		6,229			5,627			5,482			5,111			4,953
Income before income tax expense	$	19,565		$	17,744		$	17,257		$	15,894		$	15,764
Plus: provision for loan losses		1,875			950			1,795			1,137			1,766
Pre-tax, pre-provision income	$	21,440		$	18,694		$	19,052		$	17,031		$	17,530

Total non-interest expense (GAAP)	$	21,689		$	20,323		$	17,788		$	18,930		$	18,284
Total Revenue (GAAP)	$	43,129		$	39,017		$	36,840		$	35,961		$	35,814
Efficiency ratio (non-GAAP)		50.3	%		52.1	%		48.3	%		52.6	%		51.1	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005807/en/

Heather Quinn

212-365-6721

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Banking Professional Services Finance

MEDIA:

July 21, 2021 4:33 pm

Faraday Future and Property Solutions Acquisition Corp. Announce Closing of Business Combination; Faraday Future to Trade on NASDAQ Under Ticker “FFIE” Beginning on July 22, 2021

Faraday Future and Property Solutions Acquisition Corp. Announce Closing of Business Combination; Faraday Future to Trade on NASDAQ Under Ticker “FFIE” Beginning on July 22, 2021

LOS ANGELES–(BUSINESS WIRE)–
Faraday Future (“FF”), a California-based global shared intelligent mobility ecosystem company, announced that it has completed its previously announced merger with Property Solutions Acquisition Corp. (“PSAC”), a special purpose acquisition company. The transaction, which was approved by PSAC’s stockholders in a special meeting held on July 20, 2021, resulted in the combined company being renamed “Faraday Future Intelligent Electric Inc.”, with its common stock and warrants to commence trading on the Nasdaq Stock Market on July 22, 2021 under the ticker symbols “FFIE” and “FFIE.WS”, respectively.

“Today is a new chapter in FF’s history, and we are thrilled to be a public company with industry leading technology, unrivaled new products, and a world class experienced team to drive the success of FF for years to come,” said Dr. Carsten Breitfeld, FF’s Global CEO. “We want to thank the stockholders of PSAC and PIPE investors for their support, reaching this milestone is a testament to the trust and confidence that such stockholders and investors have placed in our leadership, technology and business model.”

“Carsten and the FF management team have demonstrated impressive leadership throughout the business combination process. With the transaction proceeds, we believe FF has the resources to fully fund the production of the class defining FF 91 within 12 months of transaction close,” said former PSAC Co-CEO and Chairman Jordan Vogel.

The business combination will result in gross proceeds of approximately $1 billion to FF. The transaction proceeds are expected to fully finance the launch of the class defining FF 91 into the market within 12 months after closing, building upon FF’s vision to help its users and stockholders take part in shaping the future of mobility.

Users can reserve an FF 91 now at: https://www.ff.com/us/reserve.

ABOUT FARADAY FUTURE

Established in May 2014, FF is a global shared intelligent mobility ecosystem company, headquartered in Los Angeles, California. FF’s vision is to create a shared intelligent mobility ecosystem that empowers everyone to move, connect, breathe, and live freely. FF aims to perpetually improve the way people move by creating a forward-thinking mobility ecosystem that integrates clean energy, AI, the Internet and new usership models. With the FF 91, FF has envisioned a vehicle that redefines transportation, mobility, and connectivity, creating a true “third Internet living space,” complementing users’ home and smartphone Internet experience.

FOLLOW FARADAY FUTURE:

https://www.ff.com/

https://twitter.com/FaradayFuture

https://www.facebook.com/faradayfuture/

https://www.instagram.com/faradayfuture/

www.linkedin.com/company/faradayfuture

NO OFFER OR SOLICITATION

This communication shall neither constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

FORWARD LOOKING STATEMENTS

This press release includes “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside FF’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: the inability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, costs related to the business combination; FF’s ability to execute on its plans to develop and market its vehicles and the timing of these development programs; FF’s estimates of the size of the markets for its vehicles; the rate and degree of market acceptance of FF’s vehicles; the success of other competing manufacturers; the performance and security of FF’s vehicles; potential litigation involving FF; the result of future financing efforts and general economic and market conditions impacting demand for FF’s products. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the registration statement on Form S-4 and proxy statement/consent solicitation statement/prospectus and other documents previously filed by Property Solutions Acquisition Corp. and filed by Faraday Future Intelligent Electric Inc. from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and FF does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005907/en/

For Faraday Future

Investors: [email protected]

Media: [email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Hardware Security Data Management Consumer Electronics Technology Finance Professional Services General Automotive Telecommunications Automotive Software Networks VoIP Internet Mobile/Wireless

MEDIA:

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July 21, 2021 4:33 pm

e.l.f. Beauty Announces Earnings Release Date for First Quarter Fiscal 2022 Results

e.l.f. Beauty Announces Earnings Release Date for First Quarter Fiscal 2022 Results

OAKLAND, Calif.–(BUSINESS WIRE)–
e.l.f. Beauty (NYSE: ELF) (the “Company”) today announced that it will hold a webcast to discuss its first quarter fiscal 2022 results on Wednesday, August 4, 2021, at 4:30 p.m. Eastern Time. A press release detailing the Company’s results will be issued prior to the webcast, which will be hosted by Tarang Amin, Chairman and Chief Executive Officer, and Mandy Fields, Senior Vice President and Chief Financial Officer.

The webcast will be broadcasted live at https://investor.elfbeauty.com/news-and-events/events. For those unable to listen to the live broadcast, an archived version will be available at the same location.

Learn more by visiting https://investor.elfbeauty.com.

About e.l.f. Beauty

e.l.f. Beauty stands with every eye, lip, face and paw. This deep commitment to inclusive, accessible, cruelty-free beauty has fueled the success of our namesake e.l.f. Cosmetics brand since 2004. With the addition of pioneering clean-beauty brand W3LL PEOPLE and launch of the lifestyle beauty brand Keys Soulcare created with Alicia Keys, we continue to strategically expand our portfolio with brands that support our purpose and values. Our family of brands is available online, and across leading beauty, mass-market, and clean beauty specialty retailers.

Learn more by visiting https://investor.elfbeauty.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005699/en/

Investors:

KC Katten

[email protected]

Media:

Brittany Frasier, ICR, Inc.

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Cosmetics Retail

MEDIA:

July 21, 2021 4:33 pm

SkillsUSA and Invitation Homes Announce Partnership to Help Close the Skills Gap

SkillsUSA and Invitation Homes Announce Partnership to Help Close the Skills Gap

Invitation Homes Enters Three-Year Partnership

LEESBURG, Va. & DALLAS–(BUSINESS WIRE)–SkillsUSA and Invitation Homes (NYSE: INVH) have teamed up for a three-year partnership to help close the skills gap and expand skilled trades education. Invitation Homes’ contribution will support SkillsUSA’s mission to empower its members to become world-class workers, leaders, and responsible American citizens and prepare students for careers in the trade skills industry. Through the partnership, Invitation Homes is addressing a shortage of trained labor across the U.S. that is fueling a widening skills gap.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210721005206/en/

Invitation Homes will pilot two locations this upcoming school year in Tampa and Charlotte and plans to expand its support across all company markets by the 2023-24 academic year. As an employer, Invitation Homes will invest in a skilled workforce and create a strong network of students, teachers, and associates across the country who are dedicated to creating pathways to success within the industry. Invitation Homes will work with SkillsUSA by:

Supporting SkillsUSA Works, a program for students in underserved schools and communities that provides career-readiness training through the SkillsUSA Career Essentials program, along with onramps to employment opportunities in the skilled trades.
Supporting opportunities for all students at SkillsUSA national workforce development conferences including the annual National Leadership and Skills Conference and Washington Leadership Training Institute.

“Skilled workers are the backbone of our company,” said Invitation Homes President & Chief Executive Officer Dallas Tanner. “We understand the importance of investing in talent to offer and maintain a superior product. At Invitation Homes, our mission is, ‘Together with you, we make a house a home,’ and we couldn’t fulfill that mission without our skilled associates.”

Invitation Homes Chief Human Resources Officer Elizabeth Galloway also notes the connection between the company’s work and SkillsUSA’s mission. “We’ve committed to find, recruit, and educate a future class of students in the middle skills industry because we champion the value of this work every day. Our talent acquisition teams can attest there is a skills gap which can make it difficult to secure talent in each of our markets. We also know that these jobs provide substantial opportunities for growth – including promotion to management positions or the possibility of owning and operating one’s own business. That’s why we’ve chosen to step up and lend a hand to uplifting the future talent pool in our industry.”

SkillsUSA Executive Director Chelle Travis echoes the crucial need to recruit and train future skilled trades workers. “We are rolling up our sleeves every day to serve career and technical education, and to forge meaningful partnerships between education and industry that result in a better-trained workforce and an ultimately, shrinking skills gap. Working together with Invitation Homes, we can make this happen.”

About SkillsUSA

SkillsUSA is a nonprofit partnership of education and industry founded in 1965 to strengthen our nation’s skilled workforce. Driven by employer demand, SkillsUSA helps students develop necessary personal and workplace skills along with technical skills grounded in academics. This SkillsUSA Framework empowers every student to succeed at work and in life, while helping to close the skills gap in which millions of positions go unfilled. Through SkillsUSA’s championships program and curricula, employers have long ensured schools are teaching relevant technical skills, and with SkillsUSA’s new credentialing process, they can now assess how ready potential employees are for the job. SkillsUSA has members nationwide in high schools, colleges and middle schools, covering over 130 trade, technical and skilled service occupations, and is recognized by the U.S. departments of Education and Labor as integral to career and technical education. We have served nearly 13.8 million members since 1965. For more information: www.skillsusa.org.

About Invitation Homes

Invitation Homes is the nation’s premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company’s mission, “Together with you, we make a house a home,” reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents’ living experiences. For more information about Invitation Homes, visit: www.invitationhomes.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005206/en/

Invitation Homes:

Kristi DesJarlais

Phone: 972.421.3587

Email: [email protected]

SkillsUSA:

Jane Short or Karen Kitzel

Phone: 703.777.8810

Email: [email protected] or [email protected]

KEYWORDS: United States North America Texas Virginia

INDUSTRY KEYWORDS: Education Training Residential Building & Real Estate Construction & Property

MEDIA:

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July 21, 2021 4:33 pm

Vapotherm to Report Second Quarter 2021 Financial Results

Vapotherm to Report Second Quarter 2021 Financial Results

EXETER, N.H.–(BUSINESS WIRE)–
Vapotherm, Inc. (NYSE: VAPO) (“Vapotherm” or the “Company”), a global medical technology company focused on the development and commercialization of its proprietary Vapotherm high velocity therapy^® products which are used to treat patients of all ages suffering from respiratory distress, today announced that it will release financial results for the second quarter of 2021 after the close of trading on Monday, August 9, 2021. Vapotherm’s management team will host a conference call beginning at 4:30 p.m. ET to discuss the financial results and recent business developments.

To listen to the conference call on your telephone, please dial (833) 714-0922 for U.S. callers, or +1 (778) 560-2684 for international callers, approximately ten minutes prior to the start time and reference conference code 4833015. To listen to a live webcast, please visit the Investors section of the Vapotherm website at: http://investors.vapotherm.com/events-and-presentations/events. The webcast replay will be available on the Vapotherm website for 90 days following completion of the call. A replay of this conference call will be available by telephone through August 16, 2021, by dialing (800) 585-8367 in the U.S. or +1 (416) 621-4642 outside of the U.S. The replay access code is 4833015.

About Vapotherm

Vapotherm, Inc. (NYSE: VAPO) is a publicly traded developer and manufacturer of advanced respiratory technology based in Exeter, New Hampshire, USA. The company develops innovative, comfortable, non-invasive technologies for respiratory support of patients with chronic or acute breathing disorders. Over 2.8 million patients have been treated with the use of Vapotherm high velocity therapy® systems. For more information, visit www.vapotherm.com.

Vapotherm high velocity therapy is mask-free noninvasive ventilatory support and is a front-line tool for relieving respiratory distress—including hypercapnia, hypoxemia, and dyspnea. It allows for the fast, safe treatment of undifferentiated respiratory distress with one tool. The Precision Flow system’s mask-free interface delivers optimally conditioned breathing gases, making it comfortable for patients and reducing the risks and care complexities associated with mask therapies. While being treated, patients can talk, eat, drink and take oral medication.

Website Information

Vapotherm routinely posts important information for investors on the Investor Relations section of its website, http://investors.vapotherm.com/. Vapotherm intends to use this website as a means of disclosing material, non-public information and for complying with Vapotherm’s disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of Vapotherm’s website, in addition to following Vapotherm’s press releases, Securities and Exchange Commission filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, Vapotherm’s website is not incorporated by reference into, and is not a part of, this document.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005182/en/

Investor Relations Contact:

Mark Klausner or Mike Vallie, Westwicke, an ICR Company, [email protected], +1 (603) 658-0011

KEYWORDS: United States North America New Hampshire

INDUSTRY KEYWORDS: Biotechnology Medical Devices Manufacturing Other Manufacturing Health

MEDIA:

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July 21, 2021 4:32 pm

Omnicom Group Inc. Declares Dividend

PR Newswire

NEW YORK, July 21, 2021 /PRNewswire/ — The Board of Directors of Omnicom Group Inc. (NYSE: OMC) declared a quarterly dividend of 70 cents per outstanding share of the corporation’s common stock. The dividend is payable on October 12, 2021 to Omnicom Group common shareholders of record at the close of business on September 21, 2021.

About Omnicom Group Inc.
Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 70 countries. Follow us on Twitter for the latest news.

View original content:https://www.prnewswire.com/news-releases/omnicom-group-inc-declares-dividend-301338934.html

SOURCE Omnicom Group Inc.

July 21, 2021 4:31 pm

TechnipFMC Announces Second Quarter 2021 Results

Solid financial performance in both Subsea and Surface Technologies
Total Company inbound orders of $1.6 billion; Subsea inbound orders of $1.3 billion
Full-year guidance updated, supported by strength of first half results and market outlook

LONDON & HOUSTON–(BUSINESS WIRE)–
TechnipFMC plc (NYSE: FTI) (Paris: FTI) today reported second quarter 2021 results.

Summary Financial Results from Continuing Operations

Reconciliation of U.S. GAAP to non-GAAP financial measures are provided in financial schedules.

	Three Months Ended									Change
(In millions, except per share amounts)	Jun. 30, 2021			Mar. 31, 2021			Jun. 30, 2020			Sequential		Year-over- Year
Revenue	$	1,668.8		$	1,632.0		$	1,620.2		2.3	%	3.0	%
Income (loss)	($	174.7	)	$	430.3		($	177.6	)	n/m		n/m
Diluted earnings (loss) per share	$	(0.39	)	$	0.95		$	(0.40	)	n/m		n/m

Adjusted EBITDA	$	144.3		$	165.2		$	77.4		(12.7	%)	86.4	%
Adjusted EBITDA margin	8.6%			10.1%			4.8%			(150 bps)		380 bps
Adjusted income (loss)	$	(26.0	)	$	(14.5	)	$	(63.6	)	n/m		n/m
Adjusted diluted earnings (loss) per share	$	(0.06	)	$	(0.03	)	$	(0.14	)	n/m		n/m

Inbound orders	$	1,559.5		$	1,722.1		$	698.8		(9.4	%)	123.2	%
Backlog	$	7,312.0		$	7,221.4		$	7,471.2		1.3	%	(2.1	%)

Total Company revenue in the second quarter was $1,668.8 million. Loss from continuing operations attributable to TechnipFMC was $174.7 million, or $0.39 per diluted share.

After-tax charges and credits totaled $148.7 million of charges, or $0.33 per diluted share. Reported results included a loss from the Company’s equity investment in Technip Energies of $146.8 million primarily related to the change in market value in the quarter.

Adjusted loss from continuing operations was $26 million, or $0.06 per diluted share (Exhibit 6).

Adjusted EBITDA, which excludes pre-tax charges and credits, was $144.3 million; adjusted EBITDA margin was 8.6 percent (Exhibit 8). Included in adjusted EBITDA was a foreign exchange loss of $10.7 million.

Doug Pferdehirt, Chairman and CEO of TechnipFMC, stated, “Second quarter results reflect another strong quarter for our Company. Total Company revenue improved sequentially to $1.7 billion, with both Subsea and Surface Technologies segments reporting an adjusted EBITDA margin of 11 percent.”

Pferdehirt added, “In Subsea, we demonstrated our ability to continue winning, with inbound totaling $1.3 billion for the quarter. The order strength in the first half of the year has been indicative of the continued market progression we outlined last year. Year-to-date, we have announced ten awards, of which 50 percent will be executed as integrated projects. This included the addition of two new iEPCI™ clients in the quarter.”

“In Surface Technologies, inbound orders increased 32 percent from the first quarter driven by our international business where well completion activity continued to recover from the prior year decline. International growth was driven by the Middle East, the North Sea and China. Orders in the Americas also increased, reflecting continued momentum in completion and drilling activity and the success of our iComplete™ offering.”

Pferdehirt continued, “We have increased our full-year expectations for both operating segments given our strong year-to-date results and continued improvement in the broader market outlook. Subsea inbound orders of $2.8 billion in the first half of the year were strong. We continue to see a healthy list of prospects and remain very confident in our full-year guidance for Subsea orders of more than $4 billion. Furthermore, growth in 2022 is supported by an increasing set of opportunities. When using the midpoint value of our Subsea Opportunity List, the project award potential has increased by nearly 20 percent to $17 billion over the next 24 months.”

“Looking beyond the traditional market, we believe that offshore will continue to play a meaningful role in the total energy mix. We are building partnerships in support of new energy, leveraging our differentiated technologies, and capitalizing on our integrated project execution and expertise as the subsea architect.”

“We are making steady progress in our partnerships focused on wind and wave opportunities. The market momentum for wind development continues to support increased investment in this abundant source of renewable energy. And when combined with wave technology, we can generate even greater energy output and reduced intermittency utilizing integrated offshore solutions.”

Pferdehirt added, “Our Deep Purple™ solution is centered around technology development and integration capabilities that convert this renewable energy into hydrogen, enabling economies of scale that were previously unattainable by offshore renewables projects. An example of this is our recently announced partnership with Portuguese energy utility EDP, as well as several notable research partners, in a concept study for the development of green hydrogen production from offshore wind power through a project called BEHYOND.”

Pferdehirt concluded, “Our success is driven by our core competencies, having pioneered and delivered next generation subsea technologies and the industry’s only fully integrated commercial model. We are demonstrating that these unique capabilities are completely transferable to the renewable energy space, giving us confidence in our ability to extend our leadership in subsea to the development of new and novel energy resources offshore.”

Operational and Financial Highlights

Subsea

Financial Highlights

Reconciliation of U.S. GAAP to non-GAAP financial measures are provided in financial schedules.

	Three Months Ended							Change
(In millions, except per share amounts)	Jun. 30, 2021		Mar. 31, 2021		Jun. 30, 2020			Sequential		Year-over- Year
Revenue	$	1,394.3	$	1,386.5	$	1,378.5		0.6	%	1.1	%
Operating profit (loss)	$	72.4	$	37.0	$	(75.6	)	95.7	%	n/m
Adjusted EBITDA	$	154.1	$	135.1	$	99.6		14.1	%	54.7	%
Adjusted EBITDA margin	11.1%		9.7%		7.2%			140 bps		390 bps

Inbound orders	$	1,291.3	$	1,518.8	$	511.7		(15.0	%)	152.4	%
Backlog^1,2,3	$	6,951.6	$	6,857.1	$	7,085.3		1.4	%	(1.9	%)

Estimated Consolidated Backlog Scheduling (In millions)	Jun. 30, 2021
2021 (6 months)	$1,996
2022	$2,988
2023 and beyond	$1,968
Total	$6,952
¹ Backlog in the period was increased by a foreign exchange impact of $170 million.
²Backlog does not capture all revenue potential for Subsea Services.
³Backlog does not include total Company non-consolidated backlog of $594 million.

Subsea reported second quarter revenue of $1,394.3 million, a modest improvement from the first quarter. Revenue increased sequentially due to seasonal improvement in installation and services, largely offset by lower project activity in the quarter.

Subsea reported an operating profit of $72.4 million. Sequentially, operating results benefited from lower charges, improved margins in backlog and increased installation and services activity.

Subsea reported adjusted EBITDA of $154.1 million. Adjusted EBITDA increased 14.1 percent when compared to the first quarter, benefiting from higher margins in backlog and increased installation and services activity. Adjusted EBITDA margin improved 140 basis points to 11.1 percent.

Subsea inbound orders were $1,291.3 million for the quarter, reflective of the continued market improvement. Book-to-bill in the period was 0.9.

The following awards were included in the period:

Ithaca Energy Captain EOR Project (North Sea)

Significant* Engineering, Procurement, Construction and Installation (EPCI) contract from Ithaca Energy (UK) Limited for the Captain Enhanced Oil Recovery (EOR) Project in the UK North Sea. TechnipFMC will design, manufacture, deliver and install subsea equipment including a rigid riser caisson, water injection flexible flowline, umbilicals and associated equipment.

*A “significant” award ranges between $75 million and $250 million.

Karoon Patola iEPCI^TM Project (Brazil)

TechnipFMC’s first integrated Engineering, Procurement, Construction and Installation (iEPCI^TM) contract in Brazil by Karoon Energy for the Patola field development. The contract covers engineering, procurement, construction and installation of subsea trees, flexible pipes and umbilicals. TechnipFMC was chosen based on its recognized technical excellence and capability to deliver complete and integrated solutions. The Company will leverage its assets and significant local content in Brazil, including its subsea equipment and flexible pipe plants and its logistics base.

Petrobras Buzios 6-9 Fields Project (Brazil)

Substantial* contract from Petrobras for the Buzios 6-9 fields. Located in the Santos basin offshore Brazil, these fields are part of the pre-salt area, with a water depth of 2,000 meters. TechnipFMC will supply subsea trees with controls, electrical and hydraulic distribution units, topside systems, and installation and intervention support services with rental tooling. All of the subsea trees will be manufactured at our facilities in Brazil, which are powered entirely from renewable energy sources.

*A “substantial” award ranges between $250 million and $500 million.

Equinor Kristin Sør Project (North Sea)

Significant* EPCI contract by Equinor for the Kristin Sør Field in the North Sea. TechnipFMC will supply rigid pipelines, static and dynamic umbilicals, as well as pipeline and marine installation of the subsea production facilities. The project will be executed by TechnipFMC’s operating center in Oslo, Norway, with fabrication occurring in the Company’s facilities in Norway and the United Kingdom.

*A “significant” award ranges between $75 million and $250 million.

Tullow Jubilee South East Development iEPCI^TM Project (Ghana)

Significant* iEPCI™ contract for the Jubilee South East development, located offshore Ghana. It will be the Company’s first iEPCI™ project with Tullow Ghana Ltd. The contract builds upon TechnipFMC’s established relationship with Tullow and covers supply and offshore installation of all major subsea equipment, including manifolds and associated controls, flexible risers and flowlines, umbilicals, and subsea structures. At the pre-tendering stage, TechnipFMC utilized its Subsea Studio™ digital solutions to help optimize field layout.

*A “significant” award ranges between $75 million and $250 million.

Partnership and Alliance Highlights

BEHYOND: Concept study for green hydrogen production from offshore wind power

EDP, TechnipFMC and other research partners are joining forces to develop a conceptual engineering and economic feasibility study for a new offshore system for green hydrogen production from offshore wind power, called the BEHYOND project. The study will include innovative integration of equipment for the production and conditioning of green hydrogen and infrastructure that allows for its transportation to the coast. The goal is to create a unique concept that can be standardized and implemented worldwide, allowing for large-scale green hydrogen production offshore.

Each member of the consortium brings specific competencies that are complementary. TechnipFMC brings its extended history in subsea engineering, expertise developed on its Deep Purple™ green hydrogen project, and essential system integration abilities.

TechnipFMC and Halliburton’s Subsea Fiber Optic Solution selected by OTC and ExxonMobil

TechnipFMC and Halliburton received an OTC Spotlight on New Technology Award^® for their Odassea™ Subsea Fiber Optic Solution, an advanced downhole fiber optic sensing system. ExxonMobil selected the solution for its Payara development project in Guyana, the industry’s largest subsea fiber optic sensing project. The award followed completion of front-end engineering and design studies and qualifications.

The Odassea™ system integrates hardware and digital solutions to strengthen capabilities in subsea reservoir monitoring and production optimization. Halliburton provides the fiber optic sensing technology and analysis for reservoir diagnostics. TechnipFMC provides the optical connectivity from the topside to the completions. Through this collaboration, operators can accelerate full field subsea fiber optic sensing, design, and execution.

TechnipFMC and Halliburton are delivering Odassea™ solutions to multiple other subsea projects at all stages, from conceptual design to execution.

Surface Technologies

Financial Highlights

Reconciliation of U.S. GAAP to non-GAAP financial measures are provided in financial schedules.

	Three Months Ended							Change
(In millions, except per share amounts)	Jun. 30, 2021		Mar. 31, 2021		Jun. 30, 2020					Year-over- Year
Revenue	$	274.5	$	245.5	$	241.7		11.8	%	13.6	%
Operating profit (loss)	$	12.9	$	8.2	$	(13.4	)	57.3	%	n/m
Adjusted EBITDA	$	30.2	$	26.9	$	8.3		12.3	%	263.9	%
Adjusted EBITDA margin	11.0%		11.0%		3.4%			0 bps		760 bps

Inbound orders	$	268.2	$	203.3	$	187.1		31.9	%	43.3	%
Backlog	$	360.4	$	364.3	$	385.9		(1.1	%)	(6.6	%)

Surface Technologies reported second quarter revenue of $274.5 million, an increase of 11.8 percent from the first quarter. The sequential increase was primarily driven by higher activity in North America, increased international services and strong project execution. The Company also benefited from further adoption of its iComplete™ ecosystem.

Surface Technologies reported operating profit of $12.9 million. Operating profit increased sequentially primarily due to lower charges and higher sales volume.

Surface Technologies reported adjusted EBITDA of $30.2 million. Adjusted EBITDA increased 12.3 percent when compared to the first quarter, driven by higher sales volume. Adjusted EBITDA margin was unchanged at 11 percent.

Inbound orders for the quarter were $268.2 million, an increase of 31.9 percent sequentially driven by the Middle East, including Saudi Arabia, United Arab Emirates, Bahrain and Qatar, as well as the North Sea and North America. Book-to-bill improved to 1.0 in the period.

Backlog ended the period at $360.4 million. Given the short-cycle nature of the business, orders are generally converted into revenue within twelve months.

Corporate and Other Items (three months ended, June 30, 2021):

Corporate expense was $30.3 million.

Foreign exchange loss was $10.7 million.

Net interest expense was $35.2 million.

The Company recorded a tax provision of $34.9 million.

Total depreciation and amortization was $98 million.

Cash required by operating activities from continuing operations was $85.9 million. Capital expenditures were $39.7 million. Free cash flow from continuing operations was $(125.6) million (Exhibit 11).

The Company ended the period with cash and cash equivalents of $854.9 million; net debt was $1,623 million.

The Company completed the partial spin-off of Technip Energies on February 16, 2021. Financial results for Technip Energies are reported as discontinued operations. The Company’s investment in Technip Energies is reflected in current assets at market value.

The Company recognized a loss in the second quarter of $146.8 million from its equity ownership in Technip Energies. The loss was primarily related to the change in market value in the period.

On April 27, 2021, the Company sold 26.8 million shares from its retained stake in Technip Energies for proceeds of $358.1 million. As of June 30, 2021, the Company’s ownership stake was 55.5 million shares, or approximately 31 percent of Technip Energies’ outstanding shares.

2021 Full-Year Financial Guidance¹

The Company’s full-year guidance for 2021 can be found in the table below.

Updates to the Company’s full-year guidance for 2021 are as follows:

Subsea revenue in a range of $5.2 – 5.5 billion, which increased from the previous guidance range of $5.0 – 5.4 billion.
Surface Technologies EBITDA margin in a range of 10 – 12% (excluding charges and credits), which increased from the previous guidance range of 8 – 11%.
Net interest expense in a range of $135 – 140 million, which increased from the previous guidance range of $130 – 135 million.
Tax provision, as reported, in a range of $85 – 95 million, which increased from the previous guidance range of $70 – 80 million.

All segment guidance assumes no further material degradation from COVID-19-related impacts. Guidance is based on continuing operations and thus excludes the impact of Technip Energies, which is reported as discontinued operations.

*2021 Guidance Updated July 21, 2021**

Subsea			Surface Technologies
Revenue in a range of $5.2 – 5.5 billion*			Revenue in a range of $1,050 – 1,250 million

EBITDA margin in a range of 10 – 11% (excluding charges and credits)			EBITDA margin in a range of 10 – 12%* (excluding charges and credits)

TechnipFMC
Corporate expense, net $105 – 115 million
(includes depreciation and amortization of ~$5 million)

Net interest expense* $135 – 140 million

Tax provision, as reported* $85 – 95 million

Capital expenditures approximately $250 million

Free cash flow $120 – 220 million

¹Our guidance measures adjusted EBITDA margin, corporate expense, net, net interest expense and free cash flow are non-GAAP financial measures. We are unable to provide a reconciliation to comparable GAAP financial measures on a forward-looking basis without unreasonable effort because of the unpredictability of the individual components of the most directly comparable GAAP financial measure and the variability of items excluded from each such measure. Such information may have a significant, and potentially unpredictable, impact on our future financial results.

Teleconference

The Company will host a teleconference on Thursday, July 22, 2021 to discuss the second quarter 2021 financial results. The call will begin at 1 p.m. London time (8 a.m. New York time). Webcast access and an accompanying presentation can be found at www.TechnipFMC.com.

An archived audio replay will be available after the event at the same website address. In the event of a disruption of service or technical difficulty during the call, information will be posted on our website.

About TechnipFMC

TechnipFMC is a leading technology provider to the traditional and new energy industries; delivering fully integrated projects, products, and services.

With our proprietary technologies and comprehensive solutions, we are transforming our clients’ project economics, helping them unlock new possibilities to develop energy resources while reducing carbon intensity and supporting their energy transition ambitions.

Organized in two business segments — Subsea and Surface Technologies — we will continue to advance the industry with our pioneering integrated ecosystems (such as iEPCI™, iFEED™ and iComplete™), technology leadership and digital innovation.

Each of our approximately 20,000 employees is driven by a commitment to our clients’ success, and a culture of strong execution, purposeful innovation, and challenging industry conventions.

TechnipFMC uses its website as a channel of distribution of material company information. To learn more about how we are driving change in the industry, go to www.TechnipFMC.com and follow us on Twitter @TechnipFMC.

This communication contains “forward-looking statements” as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statement usually relate to future events and anticipated revenues, earnings, cash flows, or other aspects of our operations or operating results. Forward-looking statements are often identified by words such as “guidance,” “confident,” “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” “may,” “will,” “likely,” “predicated,” “estimate,” “outlook” and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on our current expectations, beliefs, and assumptions concerning future developments and business conditions and their potential effect on us. While management believes these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All of our forward-looking statements involve risks and uncertainties (some of which are significant or beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections, including unpredictable trends in the demand for and price of crude oil and natural gas; competition and unanticipated changes relating to competitive factors in our industry, including ongoing industry consolidation; the COVID-19 pandemic and its impact on the demand for our products and services; our inability to develop, implement and protect new technologies and services; the cumulative loss of major contracts, customers or alliances; disruptions in the political, regulatory, economic and social conditions of the countries in which we conduct business; the refusal of DTC and Euroclear to act as depository and clearing agencies for our shares; the United Kingdom’s withdrawal from the European Union; the impact of our existing and future indebtedness and the restrictions on our operations by terms of the agreements governing our existing indebtedness; the risks caused by our acquisition and divestiture activities; the risks caused by fixed-price contracts; any delays and cost overruns of new capital asset construction projects for vessels and manufacturing facilities; our failure to deliver our backlog; our reliance on subcontractors, suppliers and our joint venture partners; a failure or breach of our IT infrastructure or that of our subcontractors, suppliers or joint venture partners, including as a result of cyber-attacks; the risks of pirates endangering our maritime employees and assets; potential liabilities inherent in the industries in which we operate or have operated; our failure to comply with numerous laws and regulations, including those related to environmental protection, health and safety, labor and employment, import/export controls, currency exchange, bribery and corruption, taxation, privacy, data protection and data security; the additional restrictions on dividend payouts or share repurchases as an English public limited company; uninsured claims and litigation against us, including intellectual property litigation; tax laws, treaties and regulations and any unfavorable findings by relevant tax authorities; the uncertainties related to the anticipated benefits or our future liabilities in connection with the spin-off of Technip Energies (the “Spin-off”); any negative changes in Technip Energies’ results of operations, cash flows and financial position, which impact the value of our remaining investment therein; potential departure of our key managers and employees; adverse seasonable and weather conditions and unfavorable currency exchange rate and risk in connection with our defined benefit pension plan commitments and other risks as discussed in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and Part II, Item 1A, “Risk Factors” of our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021.

We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.

Category: UK regulatory

Exhibit 1
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data)

	(Unaudited)
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2021			2021			2020			2021			2020

Revenue	$	1,668.8		$	1,632.0		$	1,620.2		$	3,300.8		$	3,202.8
Costs and expenses	1,636.3			1,630.8			1,737.2			3,267.1			6,561.1
	32.5			1.2			(117.0		)	33.7			(3,358.3		)

Other (expense) income, net	11.8			43.3			(4.6		)	55.1			8.6
Income (loss) from investment in Technip Energies	(146.8		)	470.1			—			323.3			—

Income (loss) before net interest expense and income taxes	(102.5		)	514.6			(121.6		)	412.1			(3,349.7		)
Net interest expense	(35.2		)	(34.5		)	(26.6		)	(69.7		)	(49.6		)
Loss on early extinguishment of debt	—			(23.5		)	—			(23.5		)	—

Income (loss) before income taxes	(137.7		)	456.6			(148.2		)	318.9			(3,399.3		)
Provision (benefit) for income taxes	34.9			24.5			27.6			59.4			4.4

Income (loss) from continuing operations	(172.6		)	432.1			(175.8		)	259.5			(3,403.7		)
Income from continuing operations attributable to non-controlling interests	(2.1		)	(1.8		)	(1.8		)	(3.9		)	(8.7		)
Income (loss) from continuing operations attributable to TechnipFMC plc	(174.7		)	430.3			(177.6		)	255.6			(3,412.4		)

Income (loss) from discontinued operations	7.7			(60.2		)	191.1			(52.5		)	173.3
Income from discontinued operations attributable to non-controlling interests	—			(1.9		)	(1.8		)	(1.9		)	(5.3		)
Net income (loss) attributable to TechnipFMC plc	$	(167.0	)	$	368.2		$	11.7		$	201.2		$	(3,244.4	)

Earnings (loss) per share from continuing operations
Basic and diluted	$	(0.39	)	$	0.96		$	(0.40	)	$	0.57		$	(7.62	)
Diluted	$	(0.39	)	$	0.95		$	(0.40	)	$	0.56		$	(7.62	)

Earnings (loss) per share from discontinued operations
Basic and diluted	$	0.02		$	(0.14	)	$	0.42		$	(0.12	)	$	0.38

Earnings (loss) per share attributable to TechnipFMC plc
Basic and diluted	$	(0.37	)	$	0.82		$	0.03		$	0.45		$	(7.24	)
Diluted	$	(0.37	)	$	0.81		$	0.03		$	0.44		$	(7.24	)

Weighted average shares outstanding:
Basic	450.6			449.7			448.3			450.4			447.9
Diluted	450.6			451.1			448.3			454.9			447.9

Cash dividends declared per share	$	—		$	—		$	—		$	—		$	0.13

Exhibit 2
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES BUSINESS SEGMENT DATA (In millions)

	(Unaudited)
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2021			2021			2020			2021			2020
Revenue

Subsea	$	1,394.3		$	1,386.5		$	1,378.5		$	2,780.8		$	2,631.6
Surface Technologies	274.5			245.5			241.7			520.0			571.2
	$	1,668.8		$	1,632.0		$	1,620.2		$	3,300.8		$	3,202.8

Income (loss) before income taxes

Segment operating profit (loss)
Subsea	$	72.4		$	37.0		$	(75.6	)	$	109.4		$	(2,826.3	)
Surface Technologies	12.9			8.2			(13.4		)	21.1			(437.4		)
Total segment operating profit (loss)	85.3			45.2			(89.0		)	130.5			(3,263.7		)

Corporate items
Corporate expense ⁽¹⁾	$	(30.3	)	$	(28.8	)	$	(16.5	)	$	(59.1	)	$	(46.8	)
Net interest expense	(35.2		)	(58.0		)	(26.6		)	(93.2		)	(49.6		)
Income (loss) from investment in Technip Energies	(146.8		)	470.1			—			323.3			—
Foreign exchange gains (losses)	(10.7		)	28.1			(16.1		)	17.4			(39.2		)
Total corporate items	(223.0		)	411.4			(59.2		)	188.4			(135.6		)

Income (loss) before income taxes ⁽²⁾	$	(137.7	)	$	456.6		$	(148.2	)	$	318.9		$	(3,399.3	)

(1)	Corporate expense primarily includes corporate staff expenses, share-based compensation expenses, and other employee benefits.
(2)	Includes amounts attributable to non-controlling interests.

Exhibit 3
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES BUSINESS SEGMENT DATA (In millions, unaudited)

	Three Months Ended						Six Months Ended
Inbound Orders⁽¹⁾	June 30,		March 31,		June 30,		June 30,
	2021		2021		2020		2021		2020

Subsea	$	1,291.3	$	1,518.8	$	511.7	$	2,810.1	$	1,683.8
Surface Technologies	268.2		203.3		187.1		471.5		553.4
Total inbound orders	$	1,559.5	$	1,722.1	$	698.8	$	3,281.6	$	2,237.2

Order Backlog⁽²⁾	June 30, 2021		March 31, 2021		June 30, 2020

Subsea	$	6,951.6	$	6,857.1	$	7,085.3
Surface Technologies	360.4		364.3		385.9
Total order backlog	$	7,312.0	$	7,221.4	$	7,471.2

(1)	Inbound orders represent the estimated sales value of confirmed customer orders received during the reporting period.
(2)	Order backlog is calculated as the estimated sales value of unfilled, confirmed customer orders at the reporting date.

Exhibit 4
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions)

	(Unaudited)
	June 30, 2021		December 31, 2020

Cash and cash equivalents	$	854.9	$	1,269.2
Trade receivables, net	1,272.3		987.7
Contract assets	928.3		886.8
Inventories, net	1,135.8		1,252.8
Other current assets	932.9		1,323.1
Investment in Technip Energies	760.0		—
Current assets of discontinued operations	—		5,725.1
Total current assets	5,884.2		11,444.7

Property, plant and equipment, net	2,712.7		2,756.2
Intangible assets, net	809.7		851.3
Other assets	1,321.3		1,356.9
Non-current assets of discontinued operations	—		3,283.5
Total assets	$	10,727.9	$	19,692.6

Short-term debt and current portion of long-term debt	$	297.7	$	624.7
Accounts payable, trade	1,307.2		1,201.0
Contract liabilities	833.6		1,046.8
Other current liabilities	1,275.1		1,446.2
Current liabilities of discontinued operations	—		6,096.5
Total current liabilities	3,713.6		10,415.2

Long-term debt, less current portion	2,180.2		2,835.5
Other liabilities	1,157.5		1,102.6
Non-current liabilities of discontinued operations	—		1,081.3
Redeemable non-controlling interest	47.3		43.7
TechnipFMC plc stockholders’ equity	3,586.4		4,154.2
Non-controlling interests	42.9		40.4
Non-controlling interests of discontinued operations	—		19.7
Total liabilities and equity	$	10,727.9	$	19,692.6

Exhibit 5
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions, unaudited)

(In millions)	Three Months Ended June 30,			Six Months Ended June 30,
(In millions)	2021			2021			2020
Cash provided (required) by operating activities
Net income (loss) from continuing operations	$	(172.6	)	$	259.5		$	(3,403.7	)
Adjustments to reconcile income (loss) from continuing operations to cash provided (required) by operating activities
Depreciation	74.6			145.7			153.0
Amortization	23.4			47.5			51.1
Impairments	0.8			19.6			3,221.7
Employee benefit plan and share-based compensation costs	5.8			10.5			28.5
Deferred income tax benefit, net	17.9			(14.0		)	(25.7		)
Income (loss) from investment in Technip Energies	146.8			(323.3		)	—
Unrealized (gain) loss on derivative instruments and foreign exchange	66.9			61.4			(5.2		)
Income from equity affiliates, net of dividends received	(12.7		)	(20.4		)	(35.8		)
Loss on early extinguishment of debt	—			23.5			—
Other	4.0			3.9			(13.9		)
Changes in operating assets and liabilities, net of effects of acquisitions
Trade receivables, net and contract assets	(187.9		)	(353.5		)	(126.8		)
Inventories, net	56.6			122.6			(56.8		)
Accounts payable, trade	23.6			108.4			(72.8		)
Contract liabilities	(74.0		)	(206.9		)	51.3
Income taxes payable (receivable), net	8.3			173.6			4.5
Other current assets and liabilities, net	(66.2		)	34.5			(181.5		)
Other non-current assets and liabilities, net	(1.2		)	3.0			(3.5		)
Cash provided (required) by operating activities from continuing operations	(85.9		)	95.6			(415.6		)
Cash provided by operating activities from discontinued operations	—			66.3			349.6
Cash provided (required) by operating activities	(85.9		)	161.9			(66.0		)

Cash provided (required) by investing activities
Capital expenditures	(39.7		)	(83.9		)	(163.6		)
Net proceeds (payments) from sale of debt securities	(29.1		)	(4.9		)	—
Proceeds from sales of assets	84.3			88.7			25.0
Proceeds from sale of investment in Technip Energies	358.1			458.1			—
Advances paid to BPI	(100.0		)	—			—
Proceeds from repayment of advances to joint venture	—			12.5			12.5
Other	—			—			11.2
Cash provided (required) by investing activities from continuing operations	273.6			470.5			(114.9		)
Cash required by investing activities from discontinued operations	—			(4.5		)	(22.4		)
Cash provided (required) by investing activities	273.6			466.0			(137.3		)

Cash provided (required) by financing activities
Net increase (decrease) in short-term debt	(29.3		)	(23.1		)	24.0
Net decrease in commercial paper	(21.2		)	(974.3		)	(39.1		)
Net decrease in revolving credit facility	(200.0		)	—			—
Proceeds from issuance of long-term debt	164.4			1,164.4			163.6
Repayments of long-term debt	—			(1,065.8		)	—
Dividends paid	—			—			(59.2		)
Payments for debt issuance costs	—			(53.5		)	—
Payments related to taxes withheld on share-based compensation	(2.4		)	(2.4		)	—
Other	(0.7		)	(1.1		)	(6.4		)
Cash provided (required) by financing activities from continuing operations	(89.2		)	(955.8		)	82.9
Cash required by financing activities from discontinued operations	—			(79.1		)	(327.2		)
Cash required by financing activities	(89.2		)	(1,034.9		)	(244.3		)
Effect of changes in foreign exchange rates on cash and cash equivalents	3.6			(7.3		)	(42.0		)
Change in cash and cash equivalents	102.1			(414.3		)	(489.6		)
Cash and cash equivalents, beginning of period	752.8			1,269.2			1,563.1
Cash and cash equivalents, end of period	$	854.9		$	854.9		$	1,073.5

Exhibit 6

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, unaudited)

Charges and Credits

In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), the second quarter 2021 Earnings Release also includes non-GAAP financial measures (as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended) and describes performance on a year-over-year basis against 2020 results and measures. Net income, excluding charges and credits, as well as measures derived from it (including Diluted EPS, excluding charges and credits; Income before net interest expense and taxes, excluding charges and credits (“Adjusted Operating profit”); Depreciation and amortization, excluding charges and credits; Earnings before net interest expense, income taxes, depreciation and amortization, excluding charges and credits (“Adjusted EBITDA”); and net cash) are non-GAAP financial measures. Management believes that the exclusion of charges and credits from these financial measures enables investors and management to more effectively evaluate TechnipFMC’s operations and consolidated results of operations period-over-period, and to identify operating trends that could otherwise be masked or misleading to both investors and management by the excluded items. These measures are also used by management as performance measures in determining certain incentive compensation. The foregoing non-GAAP financial measures should be considered by investors in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. The following is a reconciliation of the most comparable financial measures under GAAP to the non-GAAP financial measures.

	Three Months Ended
	June 30, 2021
	Income (loss) from continuing operations attributable to TechnipFMC plc			Income attributable to non- controlling interests from continuing operations		Provision for income taxes		Net interest expense		Income (loss) before net interest expense and income taxes (Operating profit)			Depreciation and amortization		Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)
TechnipFMC plc, as reported	$	(174.7	)	$	2.1	$	34.9	$	35.2	$	(102.5	)	$	98.0	$	(4.5	)

Charges and (credits):
Impairment and other charges	0.8			—		—		—		0.8			—		0.8
Restructuring and other charges	1.1			—		0.1		—		1.2			—		1.2
Loss from investment in Technip Energies	146.8			—		—		—		146.8			—		146.8
Adjusted financial measures	$	(26.0	)	$	2.1	$	35.0	$	35.2	$	46.3		$	98.0	$	144.3

Diluted loss per share from continuing operations attributable to TechnipFMC plc, as reported	$	(0.39	)
Adjusted diluted loss per share from continuing operations attributable to TechnipFMC plc	$	(0.06	)

	Three Months Ended
	March 31, 2021
	Income (loss) from continuing operations attributable to TechnipFMC plc			Income attributable to non-controlling interests from continuing operations		Provision (benefit) for income taxes		Net interest expense and loss on early extinguishment of debt		Income before net interest expense and income taxes (Operating profit)			Depreciation and amortization		Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)
TechnipFMC plc, as reported	$	430.3		$	1.8	$	24.5	$	58.0	$	514.6		$	95.2	$	609.8

Charges and (credits):
Impairment and other charges	18.8			—		—		—		18.8			—		18.8
Restructuring and other charges	6.5			—		0.2		—		6.7			—		6.7
Income from investment in Technip Energies	(470.1		)	—		—		—		(470.1		)	—		(470.1		)
Adjusted financial measures	$	(14.5	)	$	1.8	$	24.7	$	58.0	$	70.0		$	95.2	$	165.2

Diluted earnings per share from continuing operations attributable to TechnipFMC plc, as reported	$	0.95
Adjusted diluted loss per share from continuing operations attributable to TechnipFMC plc	$	(0.03	)

Exhibit 6
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	Three Months Ended
	June 30, 2020
	Loss from continuing operations attributable to TechnipFMC plc		Income attributable to non-controlling interests from continuing operations		Provision for income taxes		Net interest expense		Loss before net interest expense and income taxes (Operating profit)		Depreciation and amortization		Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)
TechnipFMC plc, as reported	$	(177.6)	$	1.8	$	27.6	$	26.6	$	(121.6)	$	95.4	$	(26.2)

Charges and (credits):
Impairment and other charges	53.5		—		(19.8)		—		33.7		—		33.7
Restructuring and other charges	36.0		—		2.3		—		38.3		—		38.3
Direct COVID-19 expenses	29.7		—		1.9		—		31.6		—		31.6
Valuation allowance	(5.2)		—		5.2		—		—		—		—
Adjusted financial measures	$	(63.6)	$	1.8	$	17.2	$	26.6	$	(18.0)	$	95.4	$	77.4

Diluted loss per share from continuing operations attributable to TechnipFMC plc, as reported	$	(0.40)
Adjusted diluted loss per share from continuing operations attributable to TechnipFMC plc	$	(0.14)

Exhibit 7

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, unaudited)

Charges and Credits

	Six Months Ended
	June 30, 2021
	Income (loss) from continuing operations attributable to TechnipFMC plc			Income attributable to non-controlling interests from continuing operations		Provision for income taxes		Net interest expense and loss on early extinguishment of debt		Income (loss) before net interest expense and income taxes (Operating profit)			Depreciation and amortization		Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)
TechnipFMC plc, as reported	$	255.6		$	3.9	$	59.4	$	93.2	$	412.1		$	193.2	$	605.3

Charges and (credits):
Impairment and other charges	19.6			—		—		—		19.6			—		19.6
Restructuring and other charges	7.6			—		0.3		—		7.9			—		7.9
Income from investment in Technip Energies	(323.3		)	—		—		—		(323.3		)	—		(323.3		)
Adjusted financial measures	$	(40.5	)	$	3.9	$	59.7	$	93.2	$	116.3		$	193.2	$	309.5

Diluted earnings per share from continuing operations attributable to TechnipFMC plc, as reported	$	0.56
Adjusted diluted loss per share from continuing operations attributable to TechnipFMC plc	$	(0.09	)

	Six Months Ended
	June 30, 2020
	Loss from continuing operations attributable to TechnipFMC plc			Income attributable to non-controlling interests from continuing operations		Provision for income taxes		Net interest expense		Loss before net interest expense and income taxes (Operating profit)			Depreciation and amortization			Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)
TechnipFMC plc, as reported	$	(3,412.4	)	$	8.7	$	4.4	$	49.6	$	(3,349.7	)	$	204.1		$	(3,145.6	)

Charges and (credits):
Impairment and other charges	3,213.4			—		8.3		—		3,221.7			—			3,221.7
Restructuring and other charges	40.5			—		3.8		—		44.3			—			44.3
Direct COVID-19 expenses	33.6			—		3.1		—		36.7			—			36.7
Purchase price accounting adjustment	6.5			—		2.0		—		8.5			(8.5		)	—
Valuation allowance	(3.1		)	—		3.1		—		—			—			—
Adjusted financial measures	$	(121.5	)	$	8.7	$	24.7	$	49.6	$	(38.5	)	$	195.6		$	157.1

Diluted loss per share from continuing operations attributable to TechnipFMC plc, as reported	$	(7.62	)
Adjusted diluted loss per share from continuing operations attributable to TechnipFMC plc	$	(0.27	)

Exhibit 8
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	Three Months Ended
	June 30, 2021
	Subsea			Surface Technologies			Corporate Expense			Foreign Exchange, net and Other			Total
Revenue	$	1,394.3		$	274.5		$	—		$	—		$	1,668.8

Operating profit (loss), as reported (pre-tax)	$	72.4		$	12.9		$	(30.3	)	$	(157.5	)	$	(102.5	)

Charges and (credits):
Impairment and other charges	0.6			0.2			—			—			0.8
Restructuring and other charges	0.4			0.8			—			—			1.2
Loss from investment in Technip Energies	—			—			—			146.8			146.8
Subtotal	1.0			1.0			—			146.8			148.8

Adjusted Operating profit (loss)	73.4			13.9			(30.3		)	(10.7		)	46.3

Depreciation and amortization	80.7			16.3			1.0			—			98.0

Adjusted EBITDA	$	154.1		$	30.2		$	(29.3	)	$	(10.7	)	$	144.3

Operating profit margin, as reported	5.2		%	4.7		%							-6.1			%

Adjusted Operating profit margin	5.3		%	5.1		%							2.8			%

Adjusted EBITDA margin	11.1		%	11.0		%							8.6			%

	Three Months Ended
	March 31, 2021
	Subsea			Surface Technologies			Corporate Expense		Foreign Exchange, net and Other		Total
Revenue	$	1,386.5		$	245.5		$	—	$	—	$	1,632.0

Operating profit (loss), as reported (pre-tax)	$	37.0		$	8.2		$	(28.8)	$	498.2	$	514.6

Charges and (credits):
Impairment and other charges	15.7			0.1			3.0		—		18.8
Restructuring and other charges	4.0			2.7			—		—		6.7
Income from investment in Technip Energies	—			—			—		(470.1)		(470.1)
Subtotal	19.7			2.8			3.0		(470.1)		(444.6)

Adjusted Operating profit (loss)	56.7			11.0			(25.8)		28.1		70.0

Depreciation and amortization	78.4			15.9			0.9		—		95.2

Adjusted EBITDA	$	135.1		$	26.9		$	(24.9)	$	28.1	$	165.2

Operating profit margin, as reported	2.7		%	3.3		%					31.5		%

Adjusted Operating profit margin	4.1		%	4.5		%					4.3		%

Adjusted EBITDA margin	9.7		%	11.0		%					10.1		%

Exhibit 8
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	Three Months Ended
	June 30, 2020
	Subsea				Surface Technologies				Corporate Expense			Foreign Exchange, net			Total
Revenue	$	1,378.5			$	241.7			$	—		$	—		$	1,620.2

Operating profit (loss), as reported (pre-tax)	$	(75.6	)		$	(13.4	)		$	(16.5	)	$	(16.1	)	$	(121.6	)

Charges and (credits):
Impairment and other charges	32.5				1.2				—			—			33.7
Restructuring and other charges	35.9				1.3				1.1			—			38.3
Direct COVID-19 expenses	27.4				4.2				—			—			31.6
Subtotal	95.8				6.7				1.1			—			103.6

Adjusted Operating profit (loss)	20.2				(6.7		)		(15.4		)	(16.1		)	(18.0		)

Depreciation and amortization	79.4				15.0				1.0			—			95.4

Adjusted EBITDA	$	99.6			$	8.3			$	(14.4	)	$	(16.1	)	$	77.4

Operating profit margin, as reported	-5.5			%	-5.5			%							-7.5			%

Adjusted Operating profit margin	1.5			%	-2.8			%							-1.1			%

Adjusted EBITDA margin	7.2			%	3.4			%							4.8			%

Exhibit 9
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	Six Months Ended
	June 30, 2021
	Subsea			Surface Technologies			Corporate Expense			Foreign Exchange, net and Other			Total
Revenue	$	2,780.8		$	520.0		$	—		$	—		$	3,300.8

Operating profit (loss), as reported (pre-tax)	$	109.4		$	21.1		$	(59.1	)	$	340.7		$	412.1

Charges and (credits):
Impairment and other charges	16.3			0.3			3.0			—			19.6
Restructuring and other charges	4.4			3.5			—			—			7.9
Income from investment in Technip Energies	—			—			—			(323.3		)	(323.3		)
Subtotal	20.7			3.8			3.0			(323.3		)	(295.8		)

Adjusted Operating profit (loss)	130.1			24.9			(56.1		)	17.4			116.3

Depreciation and amortization	159.1			32.2			1.9			—			193.2

Adjusted EBITDA	$	289.2		$	57.1		$	(54.2	)	$	17.4		$	309.5

Operating profit margin, as reported	3.9		%	4.1		%							12.5			%

Adjusted Operating profit margin	4.7		%	4.8		%							3.5			%

Adjusted EBITDA margin	10.4		%	11.0		%							9.4			%

	Six Months Ended
	June 30, 2020
	Subsea				Surface Technologies				Corporate Expense			Foreign Exchange, net			Total
Revenue	$	2,631.6			$	571.2			$	—		$	—		$	3,202.8

Operating loss, as reported (pre-tax)	$	(2,826.3	)		$	(437.4	)		$	(46.8	)	$	(39.2	)	$	(3,349.7	)

Charges and (credits):
Impairment and other charges	2,809.0				412.7				—			—			3,221.7
Restructuring and other charges	29.0				13.1				2.2			—			44.3
Direct COVID-19 expenses	31.4				5.3				—			—			36.7
Purchase price accounting adjustment	8.5				—				—			—			8.5
Subtotal	2,877.9				431.1				2.2			—			3,311.2

Adjusted Operating profit (loss)	51.6				(6.3		)		(44.6		)	(39.2		)	(38.5		)

Adjusted Depreciation and amortization	152.8				39.1				3.7			—			195.6

Adjusted EBITDA	$	204.4			$	32.8			$	(40.9	)	$	(39.2	)	$	157.1

Operating profit margin, as reported	-107.4			%	-76.6			%							-104.6			%

Adjusted Operating profit margin	2.0			%	-1.1			%							-1.2			%

Adjusted EBITDA margin	7.8			%	5.7			%							4.9			%

Exhibit 10
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	June 30, 2021			December 31, 2020
Cash and cash equivalents	$	854.9		$	1,269.2
Short-term debt and current portion of long-term debt	(297.7		)	(624.7		)
Long-term debt, less current portion	(2,180.2		)	(2,835.5		)
Net debt	$	(1,623.0	)	$	(2,191.0	)

Net (debt) cash, is a non-GAAP financial measure reflecting cash and cash equivalents, net of debt. Management uses this non-GAAP financial measure to evaluate our capital structure and financial leverage. We believe net debt, or net cash, is a meaningful financial measure that may assist investors in understanding our financial condition and recognizing underlying trends in our capital structure. Net (debt) cash should not be considered an alternative to, or more meaningful than, cash and cash equivalents as determined in accordance with U.S. GAAP or as an indicator of our operating performance or liquidity.

Exhibit 11
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	Three Months Ended June 30,			Six Months Ended June 30,
	2021			2021			2020
Cash provided (required) by operating activities from continuing operations	$	(85.9	)	$	95.6		$	(415.6	)
Capital expenditures	(39.7		)	(83.9		)	(163.6		)
Free cash flow (deficit) from continuing operations	$	(125.6	)	$	11.7		$	(579.2	)

Free cash flow (deficit) from continuing operations, is a non-GAAP financial measure and is defined as cash provided by operating activities less capital expenditures. Management uses this non-GAAP financial measure to evaluate our financial condition. We believe from continuing operations, free cash flow (deficit) from continuing operations is a meaningful financial measure that may assist investors in understanding our financial condition and results of operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005929/en/

Investor relations

Matt Seinsheimer

Vice President, Investor Relations

Tel: +1 281 260 3665

Email: Matt Seinsheimer

James Davis

Senior Manager, Investor Relations

Tel: +1 281 260 3665

Email: James Davis

Media relations

Nicola Cameron

Vice President, Corporate Communications

Tel: +44 383 742 297

Email: Nicola Cameron

Catie Tuley

Director, Public Relations

Tel: +1 281 591 5405

Email: Catie Tuley

KEYWORDS: Europe United States United Kingdom North America Texas

INDUSTRY KEYWORDS: Energy Other Manufacturing Manufacturing Oil/Gas

MEDIA:

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July 21, 2021 4:30 pm

Stanley Black & Decker Announces Dividend Increase To $0.79 Per Share

PR Newswire

NEW BRITAIN, Conn., July 21, 2021 /PRNewswire/ — Stanley Black & Decker (NYSE: SWK) announced today that its Board of Directors approved a $0.09, or 13%, increase of its quarterly cash dividend to $0.79 per common share. This marks the 54^th consecutive annual dividend increase for the company. The dividend is payable on Tuesday, September 21, 2021 to shareholders of record as of the close of business on Tuesday, September 7, 2021.

Stanley Black & Decker’s CEO, James M. Loree, commented, “I am pleased to continue our trend of consecutive annual dividend increases, which reflects the continued confidence we have in the cash generation potential of the company. A strong and growing dividend is a key element of our shareholder value proposition, and is consistent with our capital deployment philosophy to deliver approximately half of our excess capital to shareholders over the long term.”

Stanley Black & Decker, an S&P 500 company, is a leading $14.5 billion global diversified industrial with 53,000 employees in more than 60 countries who make the tools, products and solutions to deliver on its Purpose, For Those Who Make The World. The Company operates the world’s largest tools and storage business; the world’s second largest commercial electronic security company; and is a global industrial leader of highly engineered solutions within its engineered fastening and infrastructure businesses. Learn more at www.stanleyblackanddecker.com.

Stanley Black & Decker Investor Contacts

Dennis Lange

Vice President, Investor Relations
[email protected]
(860) 827-3833

Cort Kaufman

Director, Investor Relations
[email protected]
(860) 515-2741

Christina Francis

Director, Investor Relations
[email protected]
(860) 438-3470

Media Contact:

Debora Raymond
Vice President, Public Relations
[email protected]
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SOURCE Stanley Black & Decker

July 21, 2021 4:25 pm

First Internet Bancorp Reports Second Quarter 2021 Results

First Internet Bancorp Reports Second Quarter 2021 Results

Highlights for the second quarter include:

Record net income of $13.1 million, an increase of 233.1% over the second quarter of 2020
Record diluted earnings per share of $1.31, an increase of 227.5% over the second quarter of 2020
Adjusted net income of $11.1 million, or $1.11 per diluted share, when excluding a $2.5 million pre-tax gain on the sale of the Company’s corporate headquarters
Total revenue of $30.6 million, an increase of 57.6% over the second quarter of 2020
Adjusted revenue of $28.0 million, an increase of 44.6% over the second quarter of 2020
Net interest margin and fully-taxable equivalent net interest margin each increased 7 basis points (“bps”) from the first quarter of 2021, driven by a 13 bp decrease in the cost of interest-bearing deposits

FISHERS, Ind.–(BUSINESS WIRE)–
First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the second quarter of 2021. Net income for the second quarter of 2021 was $13.1 million, or $1.31 diluted earnings per share. This compares to net income of $10.5 million, or $1.05 diluted earnings per share, for the first quarter of 2021, and net income of $3.9 million, or $0.40 diluted earnings per share, for the second quarter of 2020.

“We produced strong operating results for the second quarter of 2021 driven by net interest margin expansion and disciplined expense management,” said David Becker, Chairman and Chief Executive Officer. “We also maintained excellent credit quality, as nonperforming loans declined during the quarter and delinquencies were at historically low levels. Additionally, our growing national SBA platform steadily gained momentum and drove higher gain-on-sale revenue. Looking forward, pipelines in SBA, as well as in other key lines of business, grew significantly during the quarter, leaving us well-positioned to capitalize on loan growth opportunities in the second half of 2021.

Mr. Becker concluded, “We continue to challenge ourselves to imagine more. First Internet Bank has fostered a workplace culture that promotes innovation, collaboration and customer focus. This is reflected in our being named one of the ‘Top Workplaces in Central Indiana’ for the eighth consecutive year. I would like to thank the entire First Internet Bank team for helping to deliver record earnings performance for the quarter.”

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2021 was $21.6 million, compared to $20.5 million for the first quarter of 2021 and $14.4 million for the second quarter of 2020. On a fully-taxable equivalent basis, net interest income for the second quarter of 2021 was $23.0 million, compared to $21.9 million for the first quarter of 2021 and $15.9 million for the second quarter of 2020.

Total interest income for the second quarter of 2021 was $33.4 million, an increase of 0.3% compared to the first quarter of 2021 and a decrease of 2.5% compared to the second quarter of 2020. On a fully-taxable equivalent basis, total interest income for the second quarter of 2021 was $34.8 million, an increase of 0.4% compared to the first quarter of 2021 and a decrease of 2.5% compared to the second quarter of 2020. The modest increase in total interest income compared to the first quarter of 2021 was driven primarily by a 0.7% increase in the average balance of interest-earning assets, which was partially offset by a 5 bp decrease in the yield on these assets. The yield on interest-earning assets for the second quarter of 2021 decreased to 3.26% from 3.31% in the prior quarter due primarily to changes in the earning asset mix. Average loan balances, including loans held for sale, decreased $62.8 million, or 2.0%, while the average balances of other earning assets and securities increased $63.7 million, or 14.3%, and $26.3 million, or 4.8%, respectively.

Total interest expense for the second quarter of 2021 was $11.8 million, a decrease of 7.7% compared to the first quarter of 2021 and a decrease of 40.5% compared to the second quarter of 2020. The decrease in total interest expense compared to the linked quarter was due primarily to a 13 bp decline in the cost of interest-bearing deposits as well as a slight decline of 0.2% in the average balance of these deposits. The decrease in deposit costs reflects the continued decline in the rates paid on interest-bearing deposits as well as a shift in the deposit mix due to a reduction in the average balance of certificates and brokered deposits.

During the second quarter of 2021, the cost of money market deposits remained stable compared to the linked quarter while the average balance of these deposits increased $46.8 million, or 3.4%. Furthermore, the cost of certificates and brokered deposits decreased by 21 bps and average balances decreased by $75.4 million, or 5.0%. During the second quarter of 2021, new certificates of deposit were originated at a weighted average cost of 44 bps while maturing certificates of deposit had a weighted average cost of 174 bps, a difference of 130 bps.

Net interest margin (“NIM”) improved to 2.11% for the second quarter of 2021, up from 2.04% for the first quarter of 2021 and 1.37% for the second quarter of 2020. Fully-taxable equivalent NIM (“FTE NIM”) increased to 2.25% for the second quarter of 2021, up from 2.18% for the first quarter of 2021 and 1.50% for the second quarter of 2020. The increases in NIM and FTE NIM compared to the linked quarter were driven primarily by lower interest-bearing deposit costs, partially offset by the change in the earning asset mix.

Noninterest Income

Noninterest income for the second quarter of 2021 was $9.0 million, compared to $8.4 million for the first quarter of 2021 and $5.0 million for the second quarter of 2020. The increase compared to the linked quarter was driven primarily by a gain on sale of premises and equipment and gain on sale of loans, partially offset by lower revenues from mortgage banking activities. During the second quarter of 2021, the Company completed the sale of its headquarters, resulting in a $2.5 million gain. Gain on sale of loans totaled $3.0 million for the quarter, increasing $1.3 million compared to the first quarter of 2021, due to an increase in the volume of U.S. Small Business Administration (“SBA”) 7(a) guaranteed loan sales and an increase in secondary market premiums during the quarter. Mortgage banking revenue totaled $2.7 million for the second quarter of 2021, down $3.1 million from the linked quarter, due primarily to decreases in interest rate locks, sold loan volume and margins.

Noninterest Expense

Noninterest expense for the second quarter of 2021 was $15.1 million, compared to $15.3 million for the first quarter of 2021 and $13.2 million for the second quarter of 2020. Noninterest expense decreased slightly on a linked-quarter basis, driven primarily by decreases of $0.3 million in salaries and employee benefits and $0.2 million in deposit insurance premium, which was partially offset by a $0.2 million increase in marketing, advertising and promotion expense. The decrease in salaries and employee benefits expense was due mainly to a decrease in medical claims expense in the second quarter of 2021. The decrease in deposit insurance premium was due to the decline in total assets year-over-year. The increase in marketing expenses was due to higher mortgage lead generation costs and sponsorship initiatives.

Income Taxes

The Company reported income tax expense of $2.4 million for the second quarter of 2021 and an effective tax rate of 15.4%, compared to income tax expense of $1.9 million and an effective tax rate of 15.1% for the first quarter of 2021 and an income tax benefit of $0.3 million for the second quarter of 2020.

Loans and Credit Quality

Total loans as of June 30, 2021 were $3.0 billion, a decrease of $101.1 million, or 3.3%, compared to March 31, 2021, and a decrease of $16.1 million, or 0.5%, compared to June 30, 2020. Total commercial loan balances were $2.4 billion as of June 30, 2021, a decrease of $85.1 million, or 3.4%, compared to March 31, 2021, and an increase of $48.3 million, or 2.0%, compared to June 30, 2020. Compared to the linked quarter, the decline in commercial loan balances was driven largely by net payoffs in healthcare finance, single tenant lease financing and public finance loans, which was partially offset by increases in commercial and industrial and investor commercial real estate loan balances.

Total consumer loan balances were $466.5 million as of June 30, 2021, a decrease of $11.9 million, or 2.5%, compared to March 31, 2021, and a decrease of $56.5 million, or 10.8%, compared to June 30, 2020. The decline in consumer loan balances from March 31, 2021 was due primarily to prepayment activity in the residential mortgage portfolio, partially offset by an increase in trailer balances.

Total delinquencies 30 days or more past due were 0.07% of total loans as of June 30, 2021, down from 0.23% as of March 31, 2021, and down from 0.25% as of June 30, 2020. Overall credit quality remained strong as nonperforming loans to total loans was 0.31% as of June 30, 2021, compared to 0.48% as of March 31, 2021, and 0.28% as of June 30, 2020. During the second quarter of 2021, nonperforming loans declined $5.4 million, or 36.8%, compared to the linked quarter due primarily to positive developments related to a single tenant lease financing relationship and a commercial and industrial relationship, both of which had been classified as nonaccrual. The single tenant lease financing relationship included two loans, one of which was paid off at net book value (unpaid principal balance less specific reserves) and the other was transferred to other real estate owned. The commercial and industrial relationship included four loans, two of which paid off during the quarter.

The allowance for loan losses as a percentage of total loans was 0.95% as of June 30, 2021, or 0.96% when excluding SBA Paycheck Protection Program (“PPP”) loans, compared to 1.00% and 1.02%, respectively, as of March 31, 2021, and 0.82% and 0.84%, respectively, as of June 30, 2020. The decline in the allowance for loan losses compared to the linked quarter was due primarily to the elimination of $2.9 million of specific reserves related to the loan relationships discussed above as well as the decrease in total loan balances, which included commercial loan portfolios with higher allowance coverage ratios. These items were partially offset by additional adjustments to the qualitative factors in the Company’s allowance model, resulting in a 6 bp increase to the allowance coverage ratio related to the general reserve on the Company’s commercial loan portfolio, which totaled 0.99% at quarter end.

Net charge-offs of $2.6 million were recognized during the second quarter of 2021, resulting in net charge-offs to average loans of 0.35%, compared to 0.02% for the first quarter of 2021 and 0.12% for the second quarter of 2020. The increase in net charge-offs is primarily due to the single tenant lease financing relationship discussed above as the loan payoff and the transfer to other real estate owned were recorded at net book value. The provision for loan losses in the second quarter of 2021 was $21,000, compared to $1.3 million for the first quarter of 2021 and $2.5 million for the second quarter of 2020. The decrease in provision for loan losses for the second quarter of 2021 was due primarily to the $101.1 million decrease in loan balances mentioned above.

Capital

As of June 30, 2021, total shareholders’ equity was $358.6 million, an increase of $14.1 million, or 4.1%, compared to March 31, 2021, and an increase of $50.9 million, or 16.6%, compared to June 30, 2020. The increase compared to the linked quarter was due primarily to net income earned during the quarter and a decrease in accumulated other comprehensive loss. Book value per common share increased to $36.39 as of June 30, 2021, up from $35.07 as of March 31, 2021, and $31.40 as of June 30, 2020. Tangible book value per share increased to $35.92, up from $34.60 and $30.92, each as of the same reference dates.

The following table presents the Company’s and the Bank’s regulatory and other capital ratios as of June 30, 2021.

	As of June 30, 2021
	Company	Bank

Total shareholders’ equity to assets	8.53%	9.45%
Tangible common equity to tangible assets ¹	8.43%	9.35%
Tier 1 leverage ratio ²	8.70%	9.61%
Common equity tier 1 capital ratio ²	12.23%	13.54%
Tier 1 capital ratio ²	12.23%	13.54%
Total risk-based capital ratio ²	15.51%	14.48%

¹ This information represents a non-GAAP financial measure. For a discussion of non-GAAP financial measures, see the section below entitled “Non-GAAP Financial Measures.”
² Regulatory capital ratios are preliminary pending filing of the Company’s and the Bank’s regulatory reports.

Conference Call and Webcast

The Company will host a conference call and webcast at 12:00 p.m. Eastern Time on Thursday, July 22, 2021, to discuss its quarterly financial results. The call can be accessed via telephone at (888) 348-3664. A recorded replay can be accessed through August 22, 2021, by dialing (877) 344-7529; passcode: 10158195.

Additionally, interested parties can listen to a live webcast of the call on the Company’s website at www.firstinternetbancorp.com. An archived version of the webcast will be available in the same location shortly after the live call has ended.

About First Internet Bancorp

First Internet Bancorp is a bank holding company with assets of $4.2 billion as of June 30, 2021. The Company’s subsidiary, First Internet Bank, opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. The Bank provides consumer and small business deposit, consumer loan, residential mortgage, and specialty finance services nationally as well as commercial real estate loans, commercial and industrial loans, SBA financing and treasury management services in select geographies. First Internet Bancorp’s common stock trades on the Nasdaq Global Select Market under the symbol “INBK” and is a component of the Russell 2000® Index. Additional information about the Company is available at www.firstinternetbancorp.com and additional information about the Bank, including its products and services, is available at www.firstib.com.

Forward-Looking Statements

This press release may contain forward-looking statements with respect to the financial condition, results of operations, trends in lending policies, plans, objectives, future performance or business of the Company. Forward-looking statements are generally identifiable by the use of words such as “anticipate,” “believe,” “continue,” “could,” “designed,” “estimate,” “expect,” “intend,” “may,” “optimistic,” “pending,” “plan,” “position,” “preliminary,” “remain,” “should,” “will,” “would” or other similar expressions. Such statements are not a guarantee of future performance or results, are based on information available at the time the statements are made and are subject to certain risks and uncertainties including: the effects of the COVID-19 global pandemic and other adverse public health developments on the economy, our business and operations and the business and operations of our vendors and customers: general economic conditions, whether national or regional, and conditions in the lending markets in which we participate that may have an adverse effect on the demand for our loans and other products; our credit quality and related levels of nonperforming assets and loan losses, and the value and salability of the real estate that we own or that is the collateral for our loans; failures or breaches of or interruptions in the communications and information systems on which we rely to conduct our business; failure of our plans to grow our commercial real estate, commercial and industrial, public finance, SBA and healthcare finance loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; fluctuations in interest rates; general economic conditions; risks relating to the regulation of financial institutions; and other factors identified in reports we file with the U.S. Securities and Exchange Commission. All statements in this press release, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, average tangible common equity, return on average tangible common equity, total interest income – FTE, net interest income – FTE, net interest margin – FTE, allowance for loan losses to loans, excluding PPP loans, adjusted revenue, adjusted income before income taxes, adjusted income tax provision, adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average shareholders’ equity, adjusted return on average tangible common equity and adjusted effective income tax rate are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this press release under the caption “Reconciliation of Non-GAAP Financial Measures.”

First Internet Bancorp
Summary Financial Information (unaudited)
Dollar amounts in thousands, except per share data

	Three Months Ended									Six Months Ended

	June 30,			March 31,			June 30,			June 30,			June 30,
	2021			2021			2020			2021			2020

Net income	$	13,096		$	10,450		$	3,932		$	23,546		$	9,951

Per share and share information
Earnings per share – basic	$	1.32		$	1.06		$	0.40		$	2.37		$	1.02
Earnings per share – diluted		1.31			1.05			0.40			2.36			1.02
Dividends declared per share		0.06			0.06			0.06			0.12			0.12
Book value per common share		36.39			35.07			31.40			36.39			31.40
Tangible book value per common share ¹		35.92			34.60			30.92			35.92			30.92
Common shares outstanding		9,854,153			9,823,831			9,799,047			9,854,153			9,799,047
Average common shares outstanding:
Basic		9,932,761			9,899,230			9,768,227			9,916,087			9,798,528
Diluted		9,981,422			9,963,036			9,768,227			9,970,147			9,802,427
Performance ratios
Return on average assets		1.25	%		1.02	%		0.37	%		1.13	%		0.47	%
Return on average shareholders’ equity		14.88	%		12.61	%		5.15	%		13.78	%		6.48	%
Return on average tangible common equity ¹		15.09	%		12.79	%		5.23	%		13.97	%		6.58	%
Net interest margin		2.11	%		2.04	%		1.37	%		2.08	%		1.43	%
Net interest margin – FTE ^1,2		2.25	%		2.18	%		1.50	%		2.21	%		1.58	%
Capital ratios ³
Total shareholders’ equity to assets		8.53	%		8.23	%		7.12	%		8.53	%		7.12	%
Tangible common equity to tangible assets ¹		8.43	%		8.12	%		7.01	%		8.43	%		7.01	%
Tier 1 leverage ratio		8.70	%		8.46	%		7.49	%		8.70	%		7.49	%
Common equity tier 1 capital ratio		12.23	%		11.81	%		10.94	%		12.23	%		10.94	%
Tier 1 capital ratio		12.23	%		11.81	%		10.94	%		12.23	%		10.94	%
Total risk-based capital ratio		15.51	%		15.18	%		14.13	%		15.51	%		14.13	%
Asset quality
Nonperforming loans	$	9,264		$	14,649		$	8,195		$	9,264		$	8,195
Nonperforming assets		10,564			14,678			10,304			10,564			10,304
Nonperforming loans to loans		0.31	%		0.48	%		0.28	%		0.31	%		0.28	%
Nonperforming assets to total assets		0.25	%		0.35	%		0.24	%		0.25	%		0.24	%
Allowance for loan losses to:
Loans		0.95	%		1.00	%		0.82	%		0.95	%		0.82	%
Loans, excluding PPP loans ¹		0.96	%		1.02	%		0.84	%		0.96	%		0.84	%
Nonperforming loans		303.0	%		209.2	%		298.5	%		303.0	%		298.5	%
Net charge-offs to average loans		0.35	%		0.02	%		0.12	%		0.18	%		0.09	%
Average balance sheet information
Loans	$	2,994,356		$	3,047,915		$	2,943,165		$	3,020,987		$	2,937,136
Total securities		574,684			548,429			657,622			561,630			644,251
Other earning assets		509,735			446,045			594,296			478,065			505,111
Total interest-earning assets		4,100,749			4,073,604			4,241,690			4,087,255			4,133,245
Total assets		4,206,966			4,173,273			4,330,174			4,190,212			4,215,053
Noninterest-bearing deposits		98,207			90,764			73,758			94,506			67,107
Interest-bearing deposits		3,109,165			3,115,987			3,270,720			3,112,557			3,179,882
Total deposits		3,207,372			3,206,751			3,344,478			3,207,063			3,246,989
Shareholders’ equity		352,894			335,968			306,868			344,478			308,937

¹ Refer to “Non-GAAP Financial Measures” section above and “Reconciliation of Non-GAAP Financial Measures” below
² On a fully-taxable equivalent (“FTE”) basis assuming a 21% tax rate
³ Regulatory capital ratios are preliminary pending filing of the Company’s regulatory reports

First Internet Bancorp
Condensed Consolidated Balance Sheets (unaudited)
Dollar amounts in thousands

	June 30,			March 31,			June 30,
	2021			2021			2020

Assets
Cash and due from banks	$	4,347		$	4,440		$	7,016
Interest-bearing deposits		324,450			411,765			491,603
Securities available-for-sale, at fair value		663,519			462,376			589,017
Securities held-to-maturity, at amortized cost		65,659			68,190			68,295
Loans held-for-sale		27,587			30,235			38,813
Loans		2,957,608			3,058,694			2,973,674
Allowance for loan losses		(28,066	)		(30,642	)		(24,465	)
Net loans		2,929,542			3,028,052			2,949,209
Accrued interest receivable		16,345			16,433			21,093
Federal Home Loan Bank of Indianapolis stock		25,650			25,650			25,650
Cash surrender value of bank-owned life insurance		38,421			38,185			37,474
Premises and equipment, net		44,249			42,381			23,939
Goodwill		4,687			4,687			4,687
Servicing asset		4,120			3,817			2,522
Other real estate owned		1,300			–			2,065
Accrued income and other assets		54,766			52,359			63,217
Total assets	$	4,204,642		$	4,188,570		$	4,324,600

Liabilities
Noninterest-bearing deposits	$	113,996		$	100,700		$	82,864
Interest-bearing deposits		3,092,151			3,116,903			3,297,925
Total deposits		3,206,147			3,217,603			3,380,789
Advances from Federal Home Loan Bank		514,919			514,917			514,913
Subordinated debt		69,871			69,794			69,681
Accrued interest payable		1,132			1,418			1,073
Accrued expenses and other liabilities		53,932			40,272			50,433
Total liabilities		3,846,001			3,844,004			4,016,889
Shareholders’ equity
Voting common stock		222,486			221,911			220,418
Retained earnings		149,066			136,575			108,431
Accumulated other comprehensive loss		(12,911	)		(13,920	)		(21,138	)
Total shareholders’ equity		358,641			344,566			307,711
Total liabilities and shareholders’ equity	$	4,204,642		$	4,188,570		$	4,324,600

First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Dollar amounts in thousands, except per share data

	Three Months Ended									Six Months Ended

	June 30,			March 31,			June 30,			June 30,			June 30,
	2021			2021			2020			2021			2020

Interest income
Loans	$	30,835		$	30,885		$	29,730		$	61,720		$	60,138
Securities – taxable		1,921			1,779			3,276			3,700			6,895
Securities – non-taxable		259			281			457			540			1,029
Other earning assets		362			335			759			697			2,404
Total interest income		33,377			33,280			34,222			66,657			70,466
Interest expense
Deposits		7,705			8,628			15,763			16,333			32,971
Other borrowed funds		4,065			4,127			4,033			8,192			8,051
Total interest expense		11,770			12,755			19,796			24,525			41,022
Net interest income		21,607			20,525			14,426			42,132			29,444
Provision for loan losses		21			1,276			2,491			1,297			3,952
Net interest income after provision for loan losses		21,586			19,249			11,935			40,835			25,492
Noninterest income
Service charges and fees		280			266			182			546			394
Loan servicing revenue		457			422			255			879			506
Loan servicing asset revaluation		(240	)		(155	)		(90	)		(395	)		(269	)
Mortgage banking activities		2,674			5,750			3,408			8,424			7,076
Gain on sale of loans		3,019			1,723			762			4,742			2,563
Gain on sale of securities		–			–			–			–			41
Gain on sale of premises and equipment		2,523			–			–			2,523			–
Other		249			369			456			618			873
Total noninterest income		8,962			8,375			4,973			17,337			11,184
Noninterest expense
Salaries and employee benefits		9,232			9,492			7,789			18,724			15,563
Marketing, advertising and promotion		872			680			411			1,552			786
Consulting and professional fees		1,078			986			932			2,064			2,109
Data processing		382			462			339			844			714
Loan expenses		541			534			399			1,075			998
Premises and equipment		1,587			1,601			1,602			3,188			3,227
Deposit insurance premium		275			425			435			700			920
Other		1,108			1,137			1,337			2,245			2,413
Total noninterest expense		15,075			15,317			13,244			30,392			26,730
Income before income taxes		15,473			12,307			3,664			27,780			9,946
Income tax provision (benefit)		2,377			1,857			(268	)		4,234			(5	)
Net income	$	13,096		$	10,450		$	3,932		$	23,546		$	9,951

Per common share data
Earnings per share – basic	$	1.32		$	1.06		$	0.40		$	2.37		$	1.02
Earnings per share – diluted	$	1.31		$	1.05		$	0.40		$	2.36		$	1.02
Dividends declared per share	$	0.06		$	0.06		$	0.06		$	0.12		$	0.12

All periods presented have been reclassified to conform to the current period classification.

First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands

	Three Months Ended

	June 30, 2021							March 31, 2021							June 30, 2020

	Average			Interest /		Yield /		Average			Interest /		Yield /		Average			Interest /		Yield /
	Balance			Dividends		Cost		Balance			Dividends		Cost		Balance			Dividends		Cost

Assets
Interest-earning assets
Loans, including loans held-for-sale ¹	$	3,016,330		$	30,835	4.10	%	$	3,079,130		$	30,885	4.07	%	$	2,989,772		$	29,730	4.00	%
Securities – taxable		490,634			1,921	1.57	%		461,300			1,779	1.56	%		560,947			3,276	2.35	%
Securities – non-taxable		84,050			259	1.24	%		87,129			281	1.31	%		96,675			457	1.90	%
Other earning assets		509,735			362	0.28	%		446,045			335	0.30	%		594,296			759	0.51	%
Total interest-earning assets		4,100,749			33,377	3.26	%		4,073,604			33,280	3.31	%		4,241,690			34,222	3.24	%

Allowance for loan losses		(30,348	)						(29,884	)						(23,388	)
Noninterest-earning assets		136,565							129,553							111,872
Total assets	$	4,206,966						$	4,173,273						$	4,330,174

Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	192,777		$	143	0.30	%	$	180,746		$	133	0.30	%	$	137,487		$	237	0.69	%
Savings accounts		55,811			49	0.35	%		46,035			40	0.35	%		37,204			92	0.99	%
Money market accounts		1,416,406			1,462	0.41	%		1,369,626			1,391	0.41	%		1,089,063			3,541	1.31	%
Certificates and brokered deposits		1,444,171			6,051	1.68	%		1,519,580			7,064	1.89	%		2,006,966			11,893	2.38	%
Total interest-bearing deposits		3,109,165			7,705	0.99	%		3,115,987			8,628	1.12	%		3,270,720			15,763	1.94	%
Other borrowed funds		584,751			4,065	2.79	%		583,780			4,127	2.87	%		584,543			4,033	2.77	%
Total interest-bearing liabilities		3,693,916			11,770	1.28	%		3,699,767			12,755	1.40	%		3,855,263			19,796	2.07	%

Noninterest-bearing deposits		98,207							90,764							73,758
Other noninterest-bearing liabilities		61,949							46,774							94,285
Total liabilities		3,854,072							3,837,305							4,023,306

Shareholders’ equity		352,894							335,968							306,868
Total liabilities and shareholders’ equity	$	4,206,966						$	4,173,273						$	4,330,174

Net interest income				$	21,607						$	20,525						$	14,426

Interest rate spread						1.98	%						1.91	%						1.17	%

Net interest margin						2.11	%						2.04	%						1.37	%

Net interest margin – FTE ^2,3						2.25	%						2.18	%						1.50	%

¹ Includes nonaccrual loans
² On a fully-taxable equivalent (“FTE”) basis assuming a 21% tax rate
³ Refer to “Non-GAAP Financial Measures” section above and “Reconciliation of Non-GAAP Financial Measures” below

First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands

	Six Months Ended

	June 30, 2021							June 30, 2020

	Average			Interest /		Yield /		Average			Interest /		Yield /
	Balance			Dividends		Cost		Balance			Dividends		Cost

Assets
Interest-earning assets
Loans, including loans held-for-sale ¹	$	3,047,560		$	61,720	4.08	%	$	2,983,883		$	60,138	4.05	%
Securities – taxable		476,049			3,700	1.57	%		545,997			6,895	2.54	%
Securities – non-taxable		85,581			540	1.27	%		98,254			1,029	2.11	%
Other earning assets		478,065			697	0.29	%		505,111			2,404	0.96	%
Total interest-earning assets		4,087,255			66,657	3.29	%		4,133,245			70,466	3.43	%

Allowance for loan losses		(30,117	)						(22,724	)
Noninterest-earning assets		133,074							104,532
Total assets	$	4,190,212						$	4,215,053

Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	186,795		$	276	0.30	%	$	130,206		$	456	0.70	%
Savings accounts		50,950			89	0.35	%		33,774			170	1.01	%
Money market accounts		1,393,145			2,853	0.41	%		977,834			7,284	1.50	%
Certificates and brokered deposits		1,481,667			13,115	1.78	%		2,038,068			25,061	2.47	%
Total interest-bearing deposits		3,112,557			16,333	1.06	%		3,179,882			32,971	2.09	%
Other borrowed funds		584,268			8,192	2.83	%		584,504			8,051	2.77	%
Total interest-bearing liabilities		3,696,825			24,525	1.34	%		3,764,386			41,022	2.19	%

Noninterest-bearing deposits		94,506							67,107
Other noninterest-bearing liabilities		54,403							74,623
Total liabilities		3,845,734							3,906,116

Shareholders’ equity		344,478							308,937
Total liabilities and shareholders’ equity	$	4,190,212						$	4,215,053

Net interest income				$	42,132						$	29,444

Interest rate spread						1.95	%						1.24	%

Net interest margin						2.08	%						1.43	%

Net interest margin – FTE ^2,3						2.21	%						1.58	%

¹ Includes nonaccrual loans
² On a fully-taxable equivalent (“FTE”) basis assuming a 21% tax rate
³ Refer to “Non-GAAP Financial Measures” section above and “Reconciliation of Non-GAAP Financial Measures” below

First Internet Bancorp
Loans and Deposits (unaudited)
Dollar amounts in thousands

	June 30, 2021				March 31, 2021				June 30, 2020

	Amount		Percent		Amount		Percent		Amount		Percent

Commercial loans
Commercial and industrial	$	96,203	3.3	%	$	71,835	2.3	%	$	81,687	2.7	%
Owner-occupied commercial real estate		87,136	2.9	%		87,930	2.9	%		86,897	2.9	%
Investor commercial real estate		28,871	1.0	%		14,832	0.5	%		13,286	0.4	%
Construction		117,970	4.0	%		123,483	4.0	%		77,591	2.6	%
Single tenant lease financing		913,115	30.9	%		941,322	30.8	%		980,292	33.0	%
Public finance		612,138	20.7	%		637,600	20.8	%		647,107	21.8	%
Healthcare finance		455,890	15.3	%		510,237	16.8	%		380,956	12.8	%
Small business lending		123,293	4.2	%		132,490	4.3	%		118,526	4.0	%
Total commercial loans		2,434,616	82.3	%		2,519,729	82.4	%		2,386,342	80.2	%

Consumer loans
Residential mortgage		177,148	6.0	%		190,148	6.2	%		208,728	7.0	%
Home equity		17,510	0.6	%		17,949	0.6	%		22,640	0.8	%
Trailers		148,795	5.0	%		143,454	4.7	%		147,326	5.0	%
Recreational vehicles		91,030	3.1	%		92,221	3.0	%		102,088	3.4	%
Other consumer loans		31,971	1.1	%		34,534	1.1	%		42,218	1.4	%
Total consumer loans		466,454	15.8	%		478,306	15.6	%		523,000	17.6	%

Net deferred loan fees, premiums, discounts and other ¹		56,538	1.9	%		60,659	2.0	%		64,332	2.2	%

Total loans	$	2,957,608	100.0	%	$	3,058,694	100.0	%	$	2,973,674	100.0	%


	June 30, 2021				March 31, 2021				June 30, 2020

	Amount		Percent		Amount		Percent		Amount		Percent

Deposits
Noninterest-bearing deposits	$	113,996	3.6	%	$	100,700	3.1	%	$	82,864	2.5	%
Interest-bearing demand deposits	$	196,841	6.1	%		186,015	5.8	%		152,391	4.5	%
Savings accounts	$	56,298	1.8	%		51,251	1.6	%		43,366	1.3	%
Money market accounts	$	1,432,355	44.6	%		1,397,449	43.4	%		1,241,874	36.7	%
Certificates of deposits	$	1,087,350	33.9	%		1,174,764	36.5	%		1,470,905	43.5	%
Brokered deposits	$	319,307	10.0	%		307,424	9.6	%		389,389	11.5	%
Total deposits	$	3,206,147	100.0	%	$	3,217,603	100.0	%	$	3,380,789	100.0	%

¹ Includes carrying value adjustments of $40.4 million, $41.6 million and $46.0 million related to terminated interest rate swaps associated with public finance loans as of June 30, 2021, March 31, 2021 and June 30, 2020, respectively.

First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data

	Three Months Ended									Six Months Ended

	June 30,			March 31,			June 30,			June 30,			June 30,
	2021			2021			2020			2021			2020

Total equity – GAAP	$	358,641		$	344,566		$	307,711		$	358,641		$	307,711
Adjustments:
Goodwill		(4,687	)		(4,687	)		(4,687	)		(4,687	)		(4,687	)
Tangible common equity	$	353,954		$	339,879		$	303,024		$	353,954		$	303,024

Total assets – GAAP	$	4,204,642		$	4,188,570		$	4,324,600		$	4,204,642		$	4,324,600
Adjustments:
Goodwill		(4,687	)		(4,687	)		(4,687	)		(4,687	)		(4,687	)
Tangible assets	$	4,199,955		$	4,183,883		$	4,319,913		$	4,199,955		$	4,319,913

Common shares outstanding		9,854,153			9,823,831			9,799,047			9,854,153			9,799,047

Book value per common share	$	36.39		$	35.07		$	31.40		$	36.39		$	31.40
Effect of goodwill		(0.47	)		(0.47	)		(0.48	)		(0.47	)		(0.48	)
Tangible book value per common share	$	35.92		$	34.60		$	30.92		$	35.92		$	30.92

Total shareholders’ equity to assets		8.53	%		8.23	%		7.12	%		8.53	%		7.12	%
Effect of goodwill		(0.10	%)		(0.11	%)		(0.11	%)		(0.10	%)		(0.11	%)
Tangible common equity to tangible assets		8.43	%		8.12	%		7.01	%		8.43	%		7.01	%

Total average equity – GAAP	$	352,894		$	335,968		$	306,868		$	344,478		$	308,937
Adjustments:
Average goodwill		(4,687	)		(4,687	)		(4,687	)		(4,687	)		(4,687	)
Average tangible common equity	$	348,207		$	331,281		$	302,181		$	339,791		$	304,250

Return on average shareholders’ equity		14.88	%		12.61	%		5.15	%		13.78	%		6.48	%
Effect of goodwill		0.21	%		0.18	%		0.08	%		0.19	%		0.10	%
Return on average tangible common equity		15.09	%		12.79	%		5.23	%		13.97	%		6.58	%

Total interest income	$	33,377		$	33,280		$	34,222		$	66,657		$	70,466
Adjustments:
Fully-taxable equivalent adjustments ¹		1,394			1,356			1,437			2,750			2,972
Total interest income – FTE	$	34,771		$	34,636		$	35,659		$	69,407		$	73,438

Net interest income	$	21,607		$	20,525		$	14,426		$	42,132		$	29,444
Adjustments:
Fully-taxable equivalent adjustments ¹		1,394			1,356			1,437			2,750			2,972
Net interest income – FTE	$	23,001		$	21,881		$	15,863		$	44,882		$	32,416

Net interest margin		2.11	%		2.04	%		1.37	%		2.08	%		1.43	%
Effect of fully-taxable equivalent adjustments ¹		0.14	%		0.14	%		0.13	%		0.13	%		0.15	%
Net interest margin – FTE		2.25	%		2.18	%		1.50	%		2.21	%		1.58	%

Allowance for loan losses	$	28,066		$	30,642		$	24,465		$	28,066		$	24,465

Loans	$	2,957,608		$	3,058,694		$	2,973,674		$	2,957,608		$	2,973,674
Adjustments:
PPP loans		(39,682	)		(53,365	)		(58,948	)		(39,682	)		(58,948	)
Loans, excluding PPP loans	$	2,917,926		$	3,005,329		$	2,914,726		$	2,917,926		$	2,914,726

Allowance for loan losses to loans		0.95	%		1.00	%		0.82	%		0.95	%		0.82	%
Effect of PPP loans		0.01	%		0.02	%		0.02	%		0.01	%		0.02	%
Allowance for loan losses to loans, excluding PPP loans		0.96	%		1.02	%		0.84	%		0.96	%		0.84	%

¹ Assuming a 21% tax rate

First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data

	Three Months Ended									Six Months Ended

	June 30,			March 31,			June 30,			June 30,			June 30,
	2021			2021			2020			2021			2020

Total revenue – GAAP	$	30,569		$	28,900		$	19,399		$	59,469		$	40,628
Adjustments:
Gain on sale of premises and equipment		(2,523	)		–			–			(2,523	)		–
Adjusted revenue	$	28,046		$	28,900		$	19,399		$	56,946		$	40,628

Income before income taxes – GAAP	$	15,473		$	12,307		$	3,664		$	27,780		$	9,946
Adjustments:
Gain on sale of premises and equipment		(2,523	)		–			–			(2,523	)		–
Adjusted income before income taxes	$	12,950		$	12,307		$	3,664		$	25,257		$	9,946

Income tax provision – GAAP	$	2,377		$	1,857		$	(268	)	$	4,234		$	(5	)
Adjustments:
Gain on sale of premises and equipment		(530	)		–			–			(530	)		–
Adjusted income tax provision	$	1,847		$	1,857		$	(268	)	$	3,704		$	(5	)

Net income – GAAP	$	13,096		$	10,450		$	3,932		$	23,546		$	9,951
Adjustments:
Gain on sale of premises and equipment		(1,993	)		–			–			(1,993	)		–
Adjusted net income	$	11,103		$	10,450		$	3,932		$	21,553		$	9,951

Diluted average common shares outstanding		9,981,422			9,963,036			9,768,227			9,970,147			9,802,427

Diluted earnings per share – GAAP	$	1.31		$	1.05		$	0.40		$	2.36		$	1.02
Adjustments:
Effect of gain on sale of premises and equipment		(0.20	)		–			–			(0.20	)		–
Adjusted diluted earnings per share	$	1.11		$	1.05		$	0.40		$	2.16		$	1.02

Return on average assets		1.25	%		1.02	%		0.37	%		1.13	%		0.47	%
Effect of gain on sale of premises and equipment		(0.19	%)		0.00	%		0.00	%		(0.09	%)		0.00	%
Adjusted return on average assets		1.06	%		1.02	%		0.37	%		1.04	%		0.47	%

Return on average shareholders’ equity		14.88	%		12.61	%		5.15	%		13.78	%		6.48	%
Effect of gain on sale of premises and equipment		(2.26	%)		0.00	%		0.00	%		(1.16	%)		0.00	%
Adjusted return on average shareholders’ equity		12.62	%		12.61	%		5.15	%		12.62	%		6.48	%

Return on average tangible common equity		15.09	%		12.79	%		5.23	%		13.97	%		6.58	%
Effect of gain on sale of premises and equipment		(2.30	%)		0.00	%		0.00	%		(1.18	%)		0.00	%
Adjusted return on average tangible common equity		12.79	%		12.79	%		5.23	%		12.79	%		6.58	%

Effective income tax rate		15.4	%		15.1	%		(7.3	%)		15.2	%		(0.1	%)
Effect of gain on sale of premises and equipment		(1.1	%)		0.0	%		0.0	%		(0.5	%)		0.0	%
Adjusted effective income tax rate		14.3	%		15.1	%		(7.3	%)		14.7	%		(0.1	%)

View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005926/en/

Investors/Analysts

Paula Deemer

Director of Corporate Administration

(317) 428-4628

[email protected]

Media

Nicole Lorch

President & Chief Operating Officer

(317) 532-7906

[email protected]

KEYWORDS: United States North America Indiana

INDUSTRY KEYWORDS: Banking Professional Services Finance

MEDIA:

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